Budget ‘thin cap’ measure: ending valuations outside financial accounts – Treasury fills the ‘gap’ in the transitional rule – the ‘average’ asset value will be frozen at the last complying valuation pre-Budget Night

Tax Month - July 2018

Treasury has released details of the policy principles that will be used regarding the start date and transitional period of the 2018-19 Federal Budget thin cap changes. In the 2018-19 Federal Budget, the Government announced that it will tighten Australia’s thin capitalisation rules by requiring entities to align the value of their assets for thin…

NSW land tax: Australia Avenue Developments Pty Ltd v Chief Commissioner of State Revenue (NSW) – ‘Construction Lease’, supporting a Development Agreement, still found to be a ‘lease’ and the lessee was liable to land tax as a deemed ‘owner’

Tax Month - July 2018

NSW Civil and Administrative Tribunal (Tribunal) held that a company was liable, to pay NSW land tax, as an agreement, with the land owner was, in law, a lease. The facts were as follows. Australia Avenue Developments Pty Ltd (Developer) entered into a Project Development Agreement (Development Agreement) with the Sydney Olympic Park Authority (Authority)…

Stapled structures: additional integrity rules released for inclusion in the July 2018 draft legislation released

Tax Month - August 2018

On Tuesday 7 August 2018, Treasury released draft legislation setting out the conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements for its proposed changes to the tax treatment of stapled structures. These are the integrity measures that were not ready to be released in first exposure draft of the…

Song v FCT – Seized documents covered by legal professional privilege – despite getting advice from China and from in-house legal department

Tax Month - August 2018

The Federal Court has found that most of the 23 documents obtained by the ATO, in the course of conducting an audit of the taxpayer, and associated entities, were protected by legal professional privilege (LPP). The documents were original emails, forwarding chains of emails and attachments. The matters to which the documents related included a…

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…