Monthly Archives: November 2019

Commissioner appeals Addy decision – backpackers from Chile, Finland, Germany, Japan, Norway, Turkey and the United Kingdom urged to wait and employers likewise

On 26.11.19, the Commissioner of Taxation advised that he would appeal the Federal Court’s decision, that held the ‘backpacker’ tax did not apply to a UK national on a working holiday visa – because it offended the ‘anti-discrimination’ provisions in the UK – Australia Double Tax Agreement. See related Tax Technical article. See below for…

The new Inspector General of Taxation and Taxation Ombudsman: Karen Payne addressed the Melbourne LCA Tax Committee on the nature, role and priorities of the IGTO, particularly under her new tenure

On Friday 22.11.19, the new Inspector General of Taxation and Taxation Ombudsman (IGTO): Karen Payne addressed the Melbourne Tax Committee of the Law Council of Australia at one of their monthly meetings, and gave a presentation about the nature, role and priorities of the IGTO, particularly under her new tenure. This included a slides from…

Private Groups Stewardship Group – provides committee members with ATO’s ‘notification of clients’ and ‘typical questions’ to engage with ‘High Wealth Private Groups’

On 25.11.19, the ATO gave Private Groups Stewardship Group (PGSG) members examples of the form by which tax agents would be notified of their ‘High Wealth Private Group’ clients, with whom they wished to ‘engage’ and a list of the typical questions they might be asked. See below for the email and those documents. [Tax…

Addy v Commissioner of Taxation – Statement from ATO on effect of DTA ‘anti-discrimination’ invalidity of ‘backpacker’ tax, whilst Commissioner decides if he’ll appeal

Two days after the Federal Court decided that the ‘backpacker tax’, imposed on a UK working holiday maker, was ineffective (as a breach of the UK-Aust Double Tax Agreement ‘anti-discrimination’ provisions), the Commissioner issued his 1 November 2019 statement, on the effect of this case. This was whilst he worked out if he would appeal…

FCT v Iannuzzi (No 2) – Liquidator disqualified for 10 years for systematic conduct facilitating ‘illegal phoenixing’ which was at least ‘reckless’

On 7 November 2019, the Federal Court disqualified a registered liquidator, from acting in that capacity for 10 years, as a result of systematic negligence involving the liquidation of some 23 companies. See below for a summary of the case and the Commissioner’s media release. [Tax Month – November 2019]    

Super Guarantee amnesty Bill: Senate Committee report recommending the Bill be passed and the Minority Labor Report

On 11 November 2019 (or thereabouts), the Senate Economic Legislation Committee has released its report, into the Bill that will establish the Government’s Super Guarantee (SG) amnesty – the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019. As at the time of writing (24.11.19) the Bill has only been read a second time, in the…

Bobos v DCT – A company director subject to a default judgment for director penalties has been unsuccessful in challenging a bankruptcy notice based on the judgment debt

Bobos v DCT – On 19 November 2019, the Federal Court held that company director subject to a default judgment for director penalties has been unsuccessful in challenging a bankruptcy notice based on the judgment debt. See below for a summary of the case. [Tax Month – November 2019]  

PCG 2019/D8 – ATO won’t audit deductions claimed for superannuation contributions, made at the end of the year, through the ‘Small Business Superannuation Clearing House’, if the fund finally gets the money the next year

On Thursday 21.11.19, the ATO issued PCG 2019/D8 – dealing with the timing of tax deductions, for super contributions, made through the Small Business Superannuation Clearing House, towards the end of the year. See below for a summary of this draft Practical Compliance Guide. [Tax Month – November 2019]

TD 2019/D12 – payments that would otherwise be deductible, in Australia, could be denied deductions, despite being taxed in the US under their ‘GILTI’ (low taxed income) rules

On Thursday 21 Nov 2019, the ATO issued TD 2019/D12 – which asks the question: ‘is section 951A of the US Internal Revenue Code a provision of a law of a foreign country, that corresponds to section 456 or 457 of the Income Tax Assessment Act 1936 (ITAA36) for the purpose of subsection 832-130(5) of the…

TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets – the Commissioner ventures the ‘brave’ view they are capital in nature (and not a ‘general deduction’)

On 21.11.19, the Commissioner released TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets, seeking comments on the draft by 14 February 2020. This is a stunningly important draft ruling as it seeks to turn wages into a capital expense, by looking beyond the advantage sought (to pay for inherently ephemeral labour) to…