On Wed 13.10.2-21, the ATO issued TD 2021/7, which considers the operation of the aggregated turnover test in Subdiv 328-C ITAA 1997 (meaning of small business entity) where a connected entity or affiliate has a different accounting period to the taxpayer calculating its aggregated turnover. The aggregated turnover test (s 328-115) is used to determine…
Services Australia has advised that COVID-19 Disaster Payments are phasing out in the ACT and NSW. This is because the vaccination rate in the 2 jurisdictions has reached 70%. As of 8 October 2021, 70% of people 16 years or older in ACT have had 2 doses of a COVID-19 vaccine. For individuals who claimed the payment in the ACT,…
On Friday 15.10.21, ASIC today released updated information for employers and trustees about changes affecting the distribution of superannuation products as a result of recent law reforms (see ‘Background’ below). Employers have an obligation to ensure that superannuation guarantee contributions are paid on time to their employees’ superannuation fund of choice. Employers – ASIC’s Information Sheet…
T a x T e c h n i c a l – M o n t h l y N e w s – November 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 ______________________________________________________________________________ …
The Federal Court has dismissed a taxpayer’s appeal against a decision not to release him from his tax liabilities on grounds of serious hardship. The taxpayer was a paediatric surgery registrar and surgical assistant who managed his tax affairs poorly. He failed to lodge on time his tax returns for most years from 2007 to 2017…
On Thursday 14 October 2021, the Inspector-General of Taxation and Taxation Ombudsman (IGTO), Karen Payne today released her latest report, “An investigation into the effectiveness of the Australian Taxation Office (ATO) communications of taxpayer rights to complain, review and appeal”. The report provides a detailed look at ATO communications in relation to a sample of…
The International Consortium of Investigative Journalists (ICIJ) has released details of offshore tax planning activities contained in 11.9 million confidential files leaked from 14 offshore services firms – the so-called “Pandora Papers”. This follows the release of the “Paradise Papers” in 2017 (TT article) and the 2016 “Panama Papers” (TT article). In a statement on 4 October 2021, the…
On Tuesday 5.10.2021, the Government registered legislative instrument Corporations (Director Identification Numbers—Transitional Application Period) Instrument 2021. The instrument extends the time available for persons who are eligible officers immediately before the commencement of the director identification number obligations to apply for a director identification number (“DIN”). The persons are required to apply for a DIN…
The ATO has released a paper on how data and digitisation are driving the future of tax administration. The paper, delivered by Jeremy Hirschhorn, ATO Second Commissioner, Client Engagement was Paper delivered to the 2021 Pearcey Oration and Victorian Entrepreneur Award on 1 September 2021 and posted on the ATO website on 30 Sept 2021. It covers the following themes: thinking…
The Commissioner had a ‘soft launch’ of his proposed his draft ruling on s100A of the 1936 Tax Act, This was at The Tax Institute’s recent Trusts Intensive. The following notes were taken by an attendee at this trust intensive. The ruling will not be released until the new year, because the ATO does not want to…