January 2020 - Page 2 of 5

Whitt v Clough Projects – Super contributions for offshore gas worker, “in accordance” with the SGC law, were limited to ‘maximum contribution base’ earnings (after which there is no SG charge)

Tax Month - January 2020By John Morgan January 20, 2020

On 20 December 2019, the Federal Circuit Court ruled that an offshore gas worker was only entitled to superannuation contributions under an industrial agreement up to the “maximum contribution base” in accordance with the Superannuation Guarantee (Administration)Act 1992 (SGAA). See below for a summary of the case. [Tax Month – January 2020]

DGR status proposed for ‘Men’s Sheds’ and ‘Women’s Sheds’ – draft Bill released – Submissions by 14 February 2020

Tax Month - January 2020By John Morgan January 20, 2020

On Monday 20 Jan 2020, Treasury released an exposure draft of legislation to establish a Deductible Gift Recipient (DGR) general category for ‘men’s sheds’ and ‘women’s sheds’ as announced in the 2019 Federal Budget. See below for more detail about this draft material. [Tax Month – January 2020]

Recent Federal and State changes to tax and duty on Property assets – both investors and private use – including the controversial abolition of the ‘main residence’ CGT exemption, for non-residents, with the transitional relief due to expire on 30 June 2020

Tax Month - January 2020By John Morgan January 20, 2020

On Friday17 Jan 2020, The Tax Institute sent the first of it’s weekly ‘TaxVine’ email updates, and their Senior Tax Counsel: Bob Deutsch’s Report focussed on property investors and a number of specific changes that will impact on certain property investors and could require action if the worst aspects are to be avoided. See below for further…

Melbourne Apartment Project Pty Ltd v CofT – Sale of unit by charity was GST-free under s38-250 – ‘supply of accommodation’ not limited to leases etc.

Tax Month - December 2019By John Morgan January 18, 2020

On 19 December 2019, the Federal Court (Kerr J) held that the sale of a unit (apartment) by a charity constituted a “supply of accommodation” and so qualified as a GST-free supply. See below for a summary of the case. [Tax Month – December 2019]

CofT v Bosanac (No 5) & DCT v Huang – stays refused on tax debts in two cases – principles for granting stays articulated

Tax Month - December 2019By John Morgan January 18, 2020

Two separate taxpayers have, in quick succession, failed to obtain a stay of execution of judgment, before different Federal Court judgement, the first on 17 December 2019, before McKerracher J, and the second on 19 December 2019, before Jagot J. See below for a brief summary of each case and the principles for granting stays,…

CofT v Eichmann – Land used for business sheds, materials and vehicles (somehow) not an ‘active asset’ – decision in favour of taxpayer overturned

Tax Month - December 2019By John Morgan January 17, 2020

On 20 December 2019 the Federal Court has upheld the ATO’s appeal against a decision that a property used to store materials, tools and other equipment was an ‘active asset‘ for the purpose of the CGT small business concessions. But what do we think about this decision? See below, for a summary of the case. [Tax Month –…

Skourmallas v CofT – GST – motor vehicle dealer allowed claim for input tax credits but warned his victory could be ‘pyrrhic’

Tax Month - December 2019By John Morgan January 17, 2020

On 20 December 2019, the AAT held that a taxpayer was entitled to ‘input tax credits’ on the purchase of an Audi R8, because he had acquired it, at least partly, for a creditable purpose. See below for a summary of the case. [Tax Month – December 2019]

Miley v CofT – Div 152 ‘market value’ test failed because ‘sale price’ not allocated to the restrictive covenants (they enhanced the value of the shares sold)

Tax Month - December 2019By John Morgan January 11, 2020

On 23 December 2019, the AAT (McCabe DP) held that the sale price of shares could not be reduced to take account of non-competition clauses included in the contract of sale. See below for a summary of the case. [Tax Month – December 2019]

Diarra V CofT – 25% of ‘shortfall’ penalty assessments for lack of ‘reasonable care’ affirmed

Tax Month - December 2019By John Morgan January 11, 2020

On 23 December 2019, the AAT (O’Loughlin DP) held that shortfall penalty imposed at the rate of 25% on the basis of a lack of reasonable care was not excessive and there were no grounds for its remission. See below for a summary of the case. [Tax Month – December 2019]

Wing v CofT – Company’s Small Business CGT exemption couldn’t save shareholder from Division 7A tax on deemed divided and shortfall penalty affirmed

Tax Month - December 2019By John Morgan January 11, 2020

On 23 Dec 2019, the AAT (Britten-Jones DP) held that an amount transferred from a company, to the taxpayer, was a deemed dividend, as the Commissioner contended, and a shortfall penalty was correctly imposed. See below for a summary of the case. [Tax Month – December 2019]

Monthly Archives: January 2020