The 1985 ‘Reform of the Tax System’ (or RATS as it was known) changed the landscape of Australian Tax, giving us things like capital gains tax (CGT); franking of dividends (to end the double taxation of company profits distributed as dividends), the Fringe Benefits Tax (FBT) and more. For those of us old enough to…
A scholarly review the history of the corporate tax residency definition and case law – both antecedent and subsequent, has been prepared by Professor Miranda Stewart of Melbourne University and is available in this article. There are also links to some supporting and related material. See below for the paper and some further details. [Tax…
On Monday 1.3.2021, the ATO released a DRAFT Practical Compliance Guideline PCG 2021/D2: Allocation of professional firm profits – ATO compliance approach (see related TT article about this). On 15 April 2021, the Law Council of Australia made its submission to this proposed PCG – criticising both its foundations and its execution. See below for…
The OECD recently recommended that our uncompetitive 30% corporate rate be lowered to the 25% rate applicable to SMEs, which has been echoed by taxpayers and advisers complaining that this ‘two-tiered’ system distorts how businesses grow and structure their operations. See below for further details. [Tax Month – April 2021]
Australia’s Incoming OECD boss Mathias Cormann and former finance minister, and US Treasury Secretary’s call for a minimum multinationals tax rate, present a potentially “remarkable” opportunity to strengthen global rules. See below for further details. [Tax Month – April 2021]
The AAT has rejected an application, to adjourn its proceedings, for review of decisions to disqualify the applicants, as trustees of superannuation entities, pending the outcome of challenges to income tax assessments based on the disqualifying transactions. See below for further details. [Tax Month – April 2021]
On Friday 16 April 2021, the Commissioner of Taxation made an instrument called the JobMaker Hiring Credit Reporting Obligations Amendment Instrument 2021 under s20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 and s27(3) of theCoronavirus Economic Response Package (Payments and Benefits) Rules 2020 (the Rules) and this instrument was registered on Tues 20.4.21. Its effect…
The ATO has released a fact sheet on its Legal Database outlining the PAYG withholding and reporting obligations for financial institutions that may arise from making remediation payments, following the Hayne Royal Commission into banking and financial services malpractice (eg. restitution for fees charged for no service). If you’re like me, you might be wondering how compensation…
AustralianSuper chief Ian Silk has accused the Morrison government of introducing “sovereign risk” to the $3 trillion superannuation system – but how could that be so? Is legislation heavily crimping advertising funds really ‘sovereign risk’, or is it the power to promulgate regulations that ban certain superfund transactions? See below for details. [Tax Month –…
The new interim CEO of the Board of Taxation, Ms Kathyrn Davy, has issued the CEO Update – April 2021 – introducing herself, dealing with submissions to its Review of CGT Rollovers Consultation Paper, its new ‘sounding board’ platform, the Tax Transparency Code (which, word has it, is slipping in support) and future meeting dates. See below…