Beckett and Tax Practitioners Board – Tax agent’s registration terminated for not a ‘fit and proper person’ person – multiple dishonesties including unexpired suspended custodial sentences inconsistent with relevant standard

Tax Month - July 2018

The AAT has confirmed a Tax Practitioners Board’s decision to terminate a tax agent’s registration because she was not a fit and proper person. In November 2017 the Board terminated the applicant’s registration as a tax agent as it did not consider she was a “fit and proper person”, as required by s 20-5 of the Tax Agents Services Act…

Unexplained Wealth Legislation Amendment Bill 2018 – relies on States referring powers for National Co-operative Scheme on the Proceeds of Crime

Tax Month - July 2018

The Unexplained Wealth Legislation Amendment Bill 2018 was introduced into the Lower House on 20 June 2018 and was referred to the Senate Legal and Constitutional Affairs Legislation Committee on 28 June 2018, for inquiry and report by 6 August 2018 (the Bill is still before the House of Reps). It proposes to amend the Proceeds of Crime…

IGT will not seek third term – in his 10 years his office has conducted 30 reviews into ‘systemic’ ATO problems and taken over the Ombudsman’s ‘individual’ complaints function (allowing one to inform the other)

Tax Month - July 2018

On 9 July 2018, the Inspector-General of Taxation (IGT), Ali Noroozi, confirmed he will not be seeking reappointment for a third term. In his 10 years as Inspector-General of Taxation Mr Noroozi has undertaken over 30 reviews of issues including ATO debt collection, tax disputes, audits, transfer pricing, services to tax practitioners, taxpayer rights, IT…

TR 2018/5 and PCG 2018/D3 – ATO’s guidance on Company ‘residency’ tests after the Bywater case – has ‘nothing changed’?

Tax Month - July 2018

The Australian Taxation Office (ATO) has just released its much-anticipated Taxation Ruling on central management and control test of residency. TR 2018/5 covers the circumstances in which a foreign-incorporated entity may be an Australian tax resident, together with draft Practical Compliance Guideline (PCG 2018/D3). This follows the High Court’s recent decision in the Bywater case…

Board of Taxations Report on Australian individual tax residency rules – modernise and include ‘bright line’ (count the days) tests to avoid growing and invasive disputation

Tax Month - July 2018

On 9 July 2018, the Board of Taxation (BoT) made public its August 2017 report to the Government, Review of the Income Tax Residency Rules for Individuals. on the same day, Minister for Revenue: Kelly O’Dwyer requested that the Board of Taxation undertake further consultation with regard to its recommendation to introduce a new set of…

Travelex Limited v FCT – interest on overpaid GST held to be payable from 14 days after the ‘surplus arose’ under s12AD of the Overpayments Act (not from notice of refund amount)

Tax Month - July 2018

A taxpayer has been successful before the Federal Court when it argued that interest on overpaid GST accrued from the day on which the GST ‘surplus arose’ under the relevant definition: ‘RBA interest day’ s12AA, s12AD & s12AF of the Taxation (Interest on Overpayments and Early Payments) Act 1983 (Overpayments Act). This sounds boring, but…

NSW: Foreign person Duty and Land Tax ‘surcharges’ as applied to discretionary trusts – foreign beneficiaries must be removed irrevocably or the surcharge will apply

Tax Month - July 2018

On 5 July 2018, the NSW Commissioner of State Revenue issued Commissioner’s Practice Note No CPN 004 on Foreign surcharges and discretionary trusts. It applies from 21 June 2016 and outlines how surcharge purchaser duty and surcharge land tax will be applied in certain situations where land is held by a discretionary trust. CPN 004 further expands…

HELP and SFSS repayment thresholds and rates 2018-19 – nil% up to $51,957 rising to 8% above $107,214 of ‘repayment income’

Tax Month - July 2018

The ATO has released the repayment thresholds and rates for 2018-19 for the compulsory repayment of Higher Education Loan Program (HELP) debts and Student Financial Supplement Scheme (SFSS) debts. HELP repayment thersholds and rates 2018-19 Repayment income* Repayment rate Below $51,957 Nil $51,957 – $57,729 2% $57,730 – $64,306 4% $64,307 – $70,881 4.5% $70,882…

Board of Taxation – July Update from CEO – ‘earn-outs’ review; Small Business Concessions review; FBT compliance costs; Residency Rules review; aligning tax and accounting treatments; Tax Transparency Code; not-for-profits review

Tax Month - July 2018

In July, the CEO of the Board of Taxation released her July 2018 Update. The Board held meetings in Canberra on 25 May 2018 and in Melbourne on 5 July 2018. At these meetings, the Board discussed the progress and direction of its current projects, including: Post implementation review of contingent consideration rules (earn-out arrangements). A review of small…