Daily Archives: July 4, 2021

Munkayilar v CofT – Work-related deductions disallowed but shortfall penalty reduced (because of tax agent error)

A taxpayer employed by an organisation that delivers services to disabled people, has been denied deductions for various work-related and self-education expenses, but the AAT decided to remit the shortfall penalty by 85% (from 50% down to 7.5% of the shortfall) because of tax agent error. See below for details. [Tax Month – June 2021]…

TR 2021/D4 – Royalties: character of receipts in respect of software – for granting right to do something that is the exclusive right of the copyright owner, etc.

On Friday 25.6.21, the Commissioner issued TR 2021/D4, which considers whether, receipts from the licensing and distribution of software, qualify as royalties (under the s 6(1) ITAA 1936 definition). It focuses on 3 software distribution models – packaged software, the digital distribution of software and cloud computing arrangements. See below for further detail. [Tax Month – June…

Smith v CofT – Retired couple granted relief from paying most of those debts – despite pay paying out certain debts ahead of the ATO

On 23 June the AAT decided that it should reverse the Commissioner’s decision not to grant ‘hardship relief’ and decided that a retired couple, with tax debts totalling almost $106,580 have been granted relief from paying most of those debts – despite pay paying out certain debts, from their collapsed business, ahead of the ATO. See…

Addy case – Hight Court has reserved its decision, in the taxpayer’s appeal on the validity of the ‘backpacker tax’

On 24 June 2021 the High Court heard the taxpayer’s appeal in the Addy case and reserved its decision. This is the case about the validity of Australia’s ‘backpacker tax’ – under an ‘anti-discrimination’ clause in a Double Tax Agreement – in this one, our agreement with the UK. See below for further details. [Tax Month – June…