Daily Archives: November 17, 2019

TR 2019/2 – Trusts arrangements that purport to avoid CGT on an asset, eventually passed to a third party, by exploiting the subdivision 126-G restructure rollover

On 31 October 2019, the ATO released TR 2019/2, which covers its concerns with unit trust arrangements, that purport to avoid CGT on transactions that eventually pass ownership of an asset, to a third party, without an CGT, by exploiting the subdivision 126-G restructure rollover. See below for further details. [Tax Month – November 2019]

Treasury Laws Amendment (International Tax Agreements) Bill 2019 passed – giving legislative force to the Australia-Israel DTA and introducing a domestic ‘deemed source rule’, for DTA purposes

On 14 Nov 2019, Parliament passed legislation to give effect to the new Australia-Israel Double Tax Agreement, and introduce a new Div 764 into our Domestic law, for DTA purposes. See below for a summary of the Bill (as passed). [Tax Month – November 2019]  

Draft guidelines on application for the ‘economic infrastructure staples tax concession’ – which reduces the 30% MIT tax withholding, for non-residents, down to 15%

On Thursday 14.11.19, Treasury released a draft ‘Guidance Note’ for potential applicants, to the Federal Treasurer, for the economic infrastructure staples tax concession. Comments are due by 17 Jan 2020. See below for a summary of this concession and the consultation. FJM 17.19 [Tax Month – November 2019]   The concession provides one of the exceptions, to…

Extension of the ‘significant global entity’ definition to go beyond groups headed by listed companies – revised exposure draft legislation after ’round 1′ consultation

On 13 Nov 2019, Treasury released an ‘exposure draft’ of legislation the extend the definition of ‘Significant Global Entity’ (calling for comments by 11 December 2019). The SGE definition not only sucks big companies, into its onerous vortex, but every member of its Group, some of which can be small, and unaware of these extended…

Vic: State Taxation Acts Further Amendment Bill 2019 passed – Duties Act and Land Tax Act changes (Nov 2019)

The State Taxation Acts Further Amendment Bill 2019 (Vic) has passed all stages without amendment, on 14 Nov 20-19, and awaits asset. This includes both Duties and Land Tax changes. See below for a summary of the Bill. FJM 17.11.19 [Tax Month – November 2019]  

DCT v Babji – DPN summary judgment dismissed – defendant was a director for less than a month, and company liabilities were due up to 2 years earlier (beware the reach of the DPN provisions)

The WA District Court dismissed a Deputy Commissioner’s claim for an extension of time to bring a summary judgment application concerning a director penalty notice (DPN) and then dismissed the summary judgment claim itself. DPN liability can apply to underlying company liabilities arising both before and after the directorship period – so beware. See below…

Victorian building developer jailed for 3 years for GST fraud over $500k – ATO media release

On 15 Nov 2019, the ATO put out a media release, headed: Victorian building developer digs hole for himself over GST fraud. He was sentenced to 3 years in jail. See below for the media release. FJM 17.11.19 [Tax Month – November 2019]

US Democratic candidates floating annual wealth taxes, Estate duty upped to 77%, Federal income taxes upped to 70%, CGT rate doubled to 40% – echos of Labor’s loss in our May 2019 election

On Friday 15 Nov 2019, The Tax Institute published an article, in its weekly ‘TaxVine’ news update (#44), by its Senior Tax Counsel: Bob Deutsch, entitled: The American political scene – Are wealth taxes coming?   See below, for the article. FJM 17.11.19 [Tax Month – November 2019]  

Tax Month – November 2019

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – November 2019 Edition – Tax developments for tax practitioners by a tax practitioner.   Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________   You…