Nguyen v CofT – upheld AAT’s application of Binetter decision – making the ‘amendment’ and ‘penalty’ decisions effectively unchallengeable – without satisfying onus on the substantive liability

Tax Month - September 2018

The Federal Court has confirmed that the onus is on the taxpayer to prove that there is no fraud or evasion. The taxpayer challenged an AAT decision (Nguyen and FCT [2016] AATA 1041) that the taxpayer had failed to discharge her burden under s 14ZZK(b)(i) of the TAA of showing that amended assessments for the 2008,…

Board of Tax’s Consultation Paper on new ‘residency’ rules for individuals – Primary (count the days) Test; Secondary (5 factor Australian ties) Test & various ‘integrity’ approaches – none great

Tax Month - September 2018

In May 2016, the Board commenced a self-initiated review of the current individual tax residency rules. In the course of it’s inquiries, the Board spoke to English taxing authorities (HMRC) about their experience (see Tax Technical articles: FOI notes of HMRC call, Tax Month article on FOI document). It found that that the current individual tax…

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Act 2018 – 12 month extension of $20,000 instant asset write-off (to 30 June 2019) now law

Tax Month - September 2018

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 having been introduced on 24 May 2018; referred to the Senate Economics Legislation Committee on the same date, which reported on 30 May 2018 (unanimously supporting passage); was introduced into the Senate on 25 June 2018; sat in abeyance over 1 July 2018…

EU 3% ‘digital’ turnover tax on ‘significant global (digital) entities’ a possibility – global annual turnover of €750 million and annual EU revenue of at least €50 million

Tax Month - September 2018

On 20 September 2018, The Irish Times reported that EU countries could agree a new short-term digital sales tax to apply to many of the major tech firms before the end of the year, according to Pascal Saint-Amans, the OECD’s leading tax expert, whilst speaking at the PwC/Irish Times tax summit, in Dublin (on 20 September 2018). Mr…

Vic land tax: Living and Leisure Australia Ltd (ACN 107 863 445) v Comr of State Revenue – assessments upheld re use of Crown land in ski resort – taxpayer loses appeal

Tax Month - September 2018

The Victorian Court of Appeal has, by majority (Niall J dissenting), granted a taxpayer leave to appeal; but then dismissed its appeal, concerning land tax assessments, in respect of Crown lands, within the alpine resorts, at Falls Creek and Mount Hotham, which were used and occupied by wholly-owned subsidiaries of the taxpayer. The background was this. The…

HMRC’s adoption of a ‘statutory rules test’ for residency of individuals – notes of Board of Tax call in October 2016 (released now under FOI)

Tax Month - September 2018

Treasury has released a document, released under Freedom of Information, relating to a Board of Tax, call it had the UK Her Majesty’s Revenue and Customs (HMRC) in October 2016, relating to their experience with their move to a ‘Statutory Rules Test’ for residency of individuals in the UK. [See Tax Technical – Tax Article] This is…

British HRMC change to ‘Statutory Rules Test’ for residency of individuals – notes of Board of Tax Call to HRMC in October 2016 (recently released under FOI)

Tax Articles, Uncategorized

On 14 September 2018, Treasury released a document, under Freedom of Information law, relating to a Board of Tax Residency call it had with UK HM Revenue and Customs (HMRC) in October 2016 relating to English change to ‘Statutory Rules Test’ for residency of individuals. I have reproduced the document, in full, below, for historical reference. FJM…

Deductibility of tax-free allowances for travel to ‘tax havens’ & notice of ‘foreign citizenship’ to the ATO, for everyone (justified by ‘citizenship for sale’ in tax havens) – to be attacked by Labor

Tax Month - September 2018

On 21 September 2018, the Shadow Assistant Treasurer: Mr Andrew Leigh, announced that a Labor Government would clamp down on unsubstantiated allowances for travel to tax havens and target ‘passport shopping’ through measures raising more than $9 million over the forward estimates”. Travel Allowances to Tax Havens: Mr Leigh said that under Australian tax law, a company…

Moreton Resources Ltd v Innovation and Science Australia – Activities in connection with a project to develop an Underground Coal Gasification Pilot Plant were NOT sufficiently experimental to qualify as ‘R&D activities’

Tax Month - September 2018

A resources company has failed to satisfy the AAT that various activities, in connection with a project to develop an Underground Coal Gasification Pilot Plant, were “R&D activities” and therefore, it was not entitled to the R&D tax incentive. The taxpayer was a company in the Australian resources sector. It sought to have various activities registered…

Ireland collects disputed €14.3b of Apple EU taxes ahead of appeal – after putting in place all the arrangements for the investment, custody and management of this massive sum

Tax Month - September 2018

The European Commission spectacularly determined that Ireland had given Apple illegal ‘State aid’ almost 2 years ago (reported by Reuters on 27.9.2016). The Commission ordered Ireland to recover the enormous sum of €13.1b plus interest (now €1.2b). I covered this in the Tax Technical article appearing in the September 2016 Tax Month. Ireland, however, sided with Apple, defending the…