Commissioner of Taxation v Thomas & others – High Court determines that Qld Supreme Court directions confirming validity of resolutions mismatching the dividend income and the franking credits did not determine the ‘franking’ result under the tax legislation

Tax Month - August 2018

On Wednesday 8 August 20018, the High Court unanimously allowed two appeals (one in part) and dismissed two appeals from the Full Court of the Federal Court of Australia. The High Court held that the Full Court erred in concluding that “directions” given by the Supreme Court of Queensland pursuant to s 96 of the…

CR 2018/32 – Mantra Group Limited: Employee Share Scheme – Tax Exempt Share Plan Shares disposed of under Scheme of Arrangement – disposal of tax exempt share plan shares

Tax Month - July 2018

On Wed 18.7.2018, the ATO issued Class Ruling CR 2018/32 (Mantra Group Limited – Employee Share Scheme – Tax Exempt Share Plan Shares disposed of under Scheme of Arrangement). This ruling considers the application of the employee share scheme rules in Div 83A of the ITAA97 to employees of Mantra Group Limited whose shares in the…

Draft legislation to broaden the definition of ‘significant global entity’ to include notional groups headed by unlisted entities, partnerships and trusts – also a separate definition of ‘CbC Reporting Entity’ (similar but not the same)

Tax Month - July 2018

On Friday 20 July 2018, Treasury released draft legislation to extend the definition of a significant global entity (SGE) by including members of large multinational groups headed by proprietary companies, trusts, partnerships and investment entities. For the moment, this draft is styled the: Treasury Laws Amendment (Measures for a later sitting) Bill 2018. This measure was…

SMSF Documents – is a non-lawyer a false economy? – DBA Lawyers review the pitfalls for unqualified suppliers, accounting and financial advisers and the ultimate client

Tax Articles

Article by Daniel Butler of DBA Lawyers on17/07/2018 in SMSF compliance, SMSF deeds, SMSF strategy, Trustee education Introduction There are numerous suppliers of self managed superannuation funds (‘SMSFs’) deeds apart from law firms with SMSF expertise. These days, for instance, there are a range of other (non-qualified) suppliers who supply SMSF deeds. These suppliers may deliver complex documents without…

TD 2018/13 – Div 7A: ordinary commercial payments or loans, to interposed entities can still trigger the s109T anti-avoidance provision (but not necessarily trigger Div 7A)

Tax Month - July 2018

On 18 July 2018, the ATO issued Taxation Determination TD 2018/13, which considers whether a Div 7A interposed entity rule (s109T of the ITAA36) can apply to an ordinary commercial payment, or loan from a private company to an interposed entity. The Commissioner concludes that it can apply, which is to say that a two step…