Resource Capital Fund IV LP applied to High Court for leave to appeal against the Full Federal Court decision finding it liable for tax on profits made on shares in an Australian company with an Australian mine and processing plant

Tax Month - May 2019

The taxpayer has applied for special leave to appeal to the High Court from the decision of the Full Federal Court in FCT v Resource Capital Fund IV LP [2019] FCAFC 51. In that case, the Full Federal Court upheld the Commissioner’s appeal in relation to the tax treatment of profits made by two US…

Chartered Accountants’ submission to the Independent Review of Tax Practitioners Board and TASA (includes TPB independence from ATO)

Tax Month - May 2019

On 8 May 2019, Chartered Accountants Australia and New Zealand (CA) made a preliminary submission to the Independent Review of the Tax Practitioners Board (TPB) and the Tax Agents Services Act 2009 (TASA). It sets out a list of 14 things that are NOT working, in Appendix 1. This includes the ‘Interaction between Tax Agent…

Tax Institute’s submission to the Review of the TPB & TASA – suggesting matters to go into their ‘Discussion Paper’ (interface with legal regulation mentioned)

Tax Month - January to April 2019

On 18 April 2019, The Tax Institute (Institute) made a submission to the Independent Review of the Tax Practices Board (Board) and its enabling legislation: Tax Agents Services Act 2009 (TASA). See this related Tax Technical article, covering this review. I made a submission to this review, as did the Law Council of Australia and…

MIT ‘cross-staple’ withholding, thin capitalisation ‘double gearing’, foreign super withholding exemption and sovereign immunity Acts passed 5 April 2019

Tax Month - January to April 2019

The Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019; Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2018 and Income Tax Rates Amendment (Sovereign Entities) Bill 2018  were passed into law on 5 April 2019, when they received Royal Assent as Acts No. 34,…

Hill v Tax Practitioners Board – tax agent deregistered without a client complaint and refused a stay of the order (read why)

Tax Month - January to April 2019

Tax agent Richard Hill applied for a stay of the Tax Practitioners Board’s decision to terminate his registration, for failings in the administration of his own affairs (even though there were no client complaints). See below for further detail about why the TPB took this action and why the AAT refused to grant the stay.…

NZ: Recent anti-BEPS legislation – ‘Final reports’ published by Inland Revenue

Tax Month - January to April 2019

The NZ Inland Revenue has published final versions of its BEPS special reports on the following rules enacted by the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (NZ), covering: large multinational groups; transfer pricing rules; permanent establishment; permanent establishment and hybrid mismatch rule for non-resident withholding tax; hybrid mismatch rules (general) and interest…