Monthly Archives: June 2021

Peter Greensill Family Co Pty Ltd (Trustee) v CofT – Trustees assessed on capital gains distributed to foreign residents – taxpayers lose appeals in Full Federal Court

On 10 June 2021, the Full Federal Court dismissed appeals against 2 separate decisions that trustees of resident discretionary trusts were assessable under s98 of the ITAA 1936 on capital gains made on the sale of shares that were not taxable Australian property (TAP) which were distributed to foreign residents – causing both taxpayers to…

The Impact of Tax Havens – as seen through EU Public Country-by-Country Reporting data

Tax Havens were a key ingredient in the amazing world consensus to do something about ‘Base Erosion and Profit Shifting’ (BEPS) but they have come to the fore again, with some European countries denying Covid-19 relief to companies in, or with subsidiaries in tax havens (though the definition of this is contentious). This coincides with…

Assessing the Federal Government’s fiscal policy response to the COVID-19 pandemic

The 2021-22 Federal Budget marks the final main instalment in the Federal Government’s fiscal policy response to the COVID-19 pandemic, barring any mishap in which there is a severe outbreak before most of the population has been fully vaccinated. So, it is timely to assess fiscal policy in the COVID-19 era. Five lessons are drawn…

Year end tax planning Part 2 – Div 7A minimum payment ‘hardship’ relief; start of 25% corporate ‘base rate’; temporary ‘full expensing’ measures; and no deductions for holding costs on vacant land or travel expenses to inspect rental properties

Further year end tax planning points (many of them less obvious) include: making hardship applications, if Div 7A minimum payments can’t be made, this year; the start of the 25% tax rate and franking rate, for ‘base-rate’ companies, with an aggregate turnover under $50m; JobKeeper derivation; crypto-currencies realisation issues; vendors claiming a credit for any tax…

Year end tax planning Part 1 – Div 7A sub-trust arrangements maturing, new TFNs to ‘closely held trusts; ‘family trust elections’ & distributions; year end superannuation contribution issues for members and employers

The end of the financial year is coming (30.6.21) and here is a short discussion of a list of some of the more esoteric issues that can trap the unwary – Div 7A ‘sub-trust’ arrangements that mature this year; reporting TFN’s to new trustees or for new beneficiaries of ‘closely held trusts’; distributions by trusts…

TD 2021/D1 – Draft Determination on how to calculate ‘aggregated turnovers’ where ‘connected’ and ‘affiliate’ entities have adopted different accounting periods for the same ‘income year’

On Fri 11.6.2001, the ATO issued Draft TD 2021/D1, which is titled “Income tax: when working out your aggregated turnover, are the relevant annual turnovers of entities connected with you, or entities that are affiliates of yours, determined by reference to your income year?”. The Commissioner proposes to rule that turnover must be calculated for…

Court Procedures and other COVID restrictions in Victoria’s 4th ‘lockdown’ – week commencing Friday 11 June 2021

Victoria has had COVID LOCKDOWN #4, for several weeks. The restrictions in Metro Melbourne, for the week commencing Friday 11 June 2021, are set out below. This article would have a ‘shelf-life’ of only 1 week, if it were not for the list of links, to the various Courts operating in Victoria, setting out their…

Uber Eats paid $400k to settle a $15k ‘unfair dismissal case that hinged on whether the rider was an ‘independent contractor’

Uber Eats paid $400,000 to settle an ‘unfair dismissal claim’ worth, at best, about $15,000, after Full Federal Court judges said they were ‘very unimpressed’ with Uber’s approach. The Settlement was reached after the hearing and before the decision was handed down. The confidential settlement was revealed under ‘parliamentary privilege’. See below for more details.…

Tax Month – June 2021

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – June 2021 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 ______________________________________________________________________________  …

Federal Government’s signature superannuation reform package, passed the lower house after dumping a controversial power allowing the Treasurer to veto super fund payments or investments

On 3 June 2021, the AFR’s Michael Read posted an article, titled: Super reforms pass lower house after government dumps ‘veto power’. It reported that the Federal Government’s signature superannuation reform package, passed the lower house on Thursday evening (3.6.21), after a controversial power allowing the Treasurer to veto super fund investments was dumped due to objections…