Allocation of Profits in Professional Firms – ATO advice to Working Group as of 28 June 2018 – definition of ‘professsionals’ (gateway) – factors in achieving structure neutral guidance focussing on economic outcomes

Tax Month - July 2018

ATO advice to Professional Firms Working Group as of 28 June 2018 Thank you for your continued input and participation as a member of the Professional Firms Working Group. Your suggestions continue to provide valuable insights which provide a richer understanding of the issues and have assisted in enabling us to progress the review of…

Tas Payroll Tax & Duty: new Act reduces payroll tax rate to 4%, imposes additional 3% point duty surcharge on foreigners, and gives a 50% duty concession to certain first home buyers and ‘downsizers’

Tax Month - July 2018

The Taxation Related Legislation (Housing Availability and Payroll Relief) Bill 2018 received Assent on 29 June 2018 as Act No 5 of 2018. It had passed the Parliament with 2 amendments from the Legislative Council concerning the removal of the reference to “greater Hobart area” and its definition from the new section 19E of the Land Tax…

Rus and FCT – 16 hectare vacant land with 10% office not an ‘active asset’ for Small Business CGT Concession purposes – objection to private ruling fails and new facts not allowed

Tax Month - July 2018

A taxpayer has unsuccessfully challenged a private ruling that land which was mostly vacant was not an “active asset” for the purpose of the CGT small business concessions. These concessions are found in Div 152 of the ITAA97 and give a (further) 50% discount, up to $500k superannuation contributions and a rollover of any remaining…

Stapled Structures for Infrastructure – whether Part IVA ‘tax avoidance’ provisions could apply – as the Commissioner postulates in Tax Alert TA 2017/1 (unlikely)

Tax Articles

A paper prepared for the Tax Institute’s National Infrastructure Conference, by Mr Greg Davies QC and Mr Eugene Wheelahan of the Victorian Bar – on 17 May 2018.   1   Introduction In its Taxpayer Alert, TA 2017/1, the Australian Taxation Office (ATO) states that it is reviewing arrangements which “attempt to fragment integrated trading businesses…

R&D Tax Incentive – R&D proposed changes released – $150m threshold, offset at corporate rate plus 13.5% points, $4m cap, higher intensity

Tax Month - July 2018

On 8 May 2018, the Government announced it will reform the Research and Development Tax Incentive (R&DTI) to better target the program and improve its integrity and fiscal affordability in response to the recommendations of the 2016 Review of the R&D Tax Incentive.  And on 29 June 2018, Treasury released its consultation material: A Consultation…

Newmont Canada FN Holdings ULC v FCT – Commissioner refused stay of proceedings pending outcome of Resource Capital Fund IV case – Div 855 ‘land rich’ decision

Tax Month - July 2018

The Federal Court has refused to grant the Tax Office a stay of proceedings in a case involving Div 855 ITAA 1997, pending the outcome of an appeal in a different, but similar, issue. The taxpayer appealed under Pt IVC TAA against assessments for the 2011 income year totalling just over $120m (the Newmont appeals). The…

GSTR 2006/6 – meaning of ‘no improvements on the land’ – draft changes to the ‘Explanation’ section (relevant for GST-free Government grants and the ‘margin scheme’

Tax Month - June 2018

On Wed 27.6.2018, the Commissioner released a draft of a further Explanation section in his GST Ruling GSTR 2006/6. This ruling considers the meaning of the phrase “improvements on the land” for GST purposes. The draft seeks to provide further details and clarification of the ATO view in order to make it easier for relevant entities…