Daily Archives: October 14, 2018

Douglass v CofT – Engineer’s ‘personal services income’ couldn’t be shared with his wife as the partnership did not pass the ‘results test’ and did not carry on a ‘personal services business’ – 50% reckless penalty upheld too

The AAT has affirmed that income received for engineering services was subject to the personal services income (PSI) rules, as the partnership business did not pass the results test. The facts were as follows: The taxpayer was the sole service provider of a control systems engineering business, carried on by the taxpayer and his wife…

PCG 2017/1 – Procurement, marketing, sales and/or distribution hubs – new Schedule 2 for ‘non-core’ procurements (25% safe level of ‘mark-ups’) – ATO audit allocation of resources advice for practical ‘swim between the flags’ compliance guidance

PCG 2017/1 was issued in January 2017, to give practical compliance guidance on transfer pricing issues related to centralised operating models involving procurement, marketing, sales and distribution functions. On 11 October 2018, the Commissioner issued an addendum to this PCG, adding Schedule 2 for ‘non-core’ procurements. In broad summary, the ‘green’ (safe) level of ‘mark-up’, is…

BEPS Action Plan 14 – ‘Mutual Agreement Procedure’ (MAP) to resolve disputes within ave. 24 months – 2017 statistics show breakdown for 85 countries

10/10/2018 – Improving the effectiveness and timeliness of dispute resolution mechanisms is the aim of Action 14 of the BEPS Action Plan (read the final report on Action 14 of the BEPS Action Plan) and is also part of the wider G20/OECD tax certainty agenda. The Action 14 minimum standard requires jurisdictions to seek to…

Board of Taxation – CEO’s update on their September 2018 meeting – small business concessions, FBT compliance cost, tax residency for individuals, Taxation of agriculture, Tax and accounting standards, 2019 meeting dates and locations

Overview of current agenda The following is an overview of our current work program, which includes: Review of small business tax concessions; Review Voluntary Tax Transparency Code (the Code) and a broader consideration of tax transparency trends in Australia and globally; Consideration of certain aspects of not-for-profit tax concessions; Further work on tax residency for…