Yearly Archives: 2018

TR 2018/6 – Trust vesting – taxation effects: too late to extend after vesting; no E1 event (resolved interests not new trusts); no E5 event until beneficiaries entitled to particular assets

On Wed 15.8.18, the ATO issued Taxation Ruling TR 2018/6, in final form, on the tax consequences of vesting a trust. These views are the same as those contained in Draft TR 2017/D10, although the final ruling includes some fine-tuning. Overview of vesting A trust’s “vesting” or “termination” date, can be the same date but…

Protecting Superannuation Package Bill – Senate Committee recommends passing these measures to ‘cap or ban’ certain fees, require ‘opt-in’ only insurance and ‘low balance’ aggregation

The Senate Economics Legislation Committee has released its report into the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 and recommended that the Bill be passed. The measures include: SUPER FEES – capped at 3% per year for administration fees, investment fees and “prescribed costs” charged on super accounts with balances less than $6,000.…

ACNC – draft ‘Conduct standards’ for charities operating overseas – to protect against criminal elements, corruption and protect vulnerable persons

On Monday 13 August 2018, the Treasury released exposure draft regulations proposing external conduct standards that charities registered with the Australian Charities and Not-for-profits Commission (ACNC) will need to comply with when operating outside Australia. These would be ‘reasonable steps’ and reporting standards, with regard to (1) criminal risks and obeying Australian laws (even overseas);…

Aussiegolfa Pty Ltd (Trustee) v CofT – SMSF invested in single property ‘sub-fund’ – leasing property to daughter of SMSF member did not breach the ‘sole purpose test’ but units in the sub-fund were ‘in-house assets’

The Full Federal Court has ruled that a Self Managed Superannuation Fund’s (SMSF‘s) investment in a property trust, which was set up so as to perform, in line with a nominated single property: did not breach the sole purpose test under s 62 of the SIS Act (despite the property being leased to the daughter of the…

R v Agius; R v Castagna (No 14) – 70 year old cousins jailed for about 7 years each, for diverting Macquarie fees through Vanuatu without declaring them as income

On 10 August 2018, the NSW Supreme Court sentenced cousins: Robert Agius and Anthony Castagna to jail, for 2 counts of what could broadly be called defrauding the Commonwealth (count 1 under s29D of the Crimes Act 1914 and count 2 under s135.4(3) of the Criminal Code 1995) and a 3rd count of dealing with…

Small Business Ombudsman calls for ‘instant asset write-off’ to be extended from a $20,000 cost cap to $100,000 – public hearing of Lower House Economics Committee on impediments to small business

On 6 August 2018, the Australian Small Business and Family Enterprise Ombudsman: Kate Carnell, put out a media release, calling for (amongst other things) for the ‘instant asset write-off’ to be increased from $20,000 to $100,000 and that this be embedded in legislation (as opposed to simply being a temporary measure enacted only in the…

CofT v ACN 154 520 199 Pty Ltd (in Liquidation) – Gold bullion GST case – Federal Court reverses AAT order that the Commissioner produce internal advice on the ‘no refining issue’ on the basis that it ‘relevant’ to the ‘penalties’ issues

On 3 August 2018, the Federal Court has struck down, as invalid, the AAT’s earlier order, that the Commissioner produce certain internal advices, that the Taxpayer believed agreed with the stance it took on whether gold could be re-refined, for GST purposes. The AAT concluded that they were ‘relevant’ to its review of the objection…

Tax Practitioners Board welcomes new Secretary/CEO – 30 year public servant lawyer coming from ATO ‘risk officer’ background

On Monday 6 August 2018, the Chair of the Tax Practitioners Board: Mr Ian Taylor, welcomed a new Secretary/Chief Executive Officer; Mr Michael O’Neill, to the role. Mr O’Neill is a taxation lawyer with close to 30 years of public service experience: joining the Board from the Australian Taxation Office (ATO), where he was Chief…