New Federal Jurisdiction for the Magistrates’ Court of Victoria – following ‘Meringnage’ case denying VCAT federal jurisdiction because it is not a ‘court’ (17.11.21 Webinar)

Tax Month - November 2021

A new civil federal jurisdiction will begin operating shortly at the Magistrates’ Court of Victoria (MCV). This jurisdiction will hear some applications previously heard by VCAT. The change follows a Court of Appeal ruling in Meringnage v Interstate Enterprises & Ors [2020] VSCA 30. The Court found that VCAT is not a court of a state, meaning it cannot…

Super ‘choice’ of investments sector: APRA information paper reveals underperformance and extension of its ‘Heatmap’ product to this sector

Tax Month - November 2021

APRA has published an Information Paper on the performance of choice superannuation products ahead of its first Choice Product Heatmap to be released in late 2021. APRA said the Choice Heatmap will be an important pre-cursor to the annual performance test for trustee-directed products that will be applied from 1 July 2022. APRA said the paper has highlighted…

Southern Global Group Pty Ltd and FCT – Taxpayer fails to prove bank deposits were loans (GST)

Tax Month - November 2021

A taxpayer has failed to discharge its onus to prove that amended GST assessments were excessive or otherwise incorrect in respect of unexplained bank deposits. The taxpayer’s main business activity was described as “management consulting services”. The ATO considered that unexplained bank deposits were unreported consideration for taxable supplies. The taxpayer contended they related to…

Sibai v CofT – Taxpayer loses appeal on scope of his ‘onus of proof’ – it was not limited to just the amendment amounts

Tax Month - November 2021

On 3 Nov 2021, the Federal Court has upheld an AAT decision rejecting the taxpayer’s contention that he was required to prove only that discrete amounts of additional assessable income included in amended assessments were not assessable. The taxpayer sought judicial review of the AAT’s decision, contending that the AAT had no jurisdiction to consider any…

CPI: September quarter 2021 index number 0.8% higher than June (3% annual)

Tax Month - November 2021

The Australian Bureau of Statistics (ABS) has released the CPI index number of 119.7 for the September quarter 2021 (up from 118.8 for the June 2020 quarter). The CPI rose 0.8% for the September 2021 quarter. The most significant price rises were for New dwelling purchases by owner-occupiers (+3.3%) and Automotive fuel (+7.1%). Over the year to the September 2021 quarter, the CPI is…

Crypto-asset related investment products: ASIC regulatory guidance

Tax Month - November 2021

On 29 October 2021, ASIC released information for product issuers and market operators on how they can meet their regulatory obligations in relation to crypto-asset exchange traded products (ETPs) and other investment products. The information covers good practices for market operators in how they admit and supervise these products, and good practices for product issuers in…

Multi-Lateral Instrument (MLI): synthesised text of Australia-Denmark Double Tax Treaty

Tax Month - November 2021

The ATO released the synthesised text of Australia’s double taxation agreement (DTA) with Denmark on 29 October 2021. It outlines the modifications that have been made to the DTA by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (MLI). The dates of the deposit of instruments of ratification, acceptance or…

Current employment tax challenges – STP Phase 2, digital everything; FBT, FIFO, ‘otherwise deductible’ test, ‘car parking fringe benefits’; Payroll Tax, ‘relevant contractor’ and ‘wages’ definitions

Tax Month - November 2021

Employment taxes present a uniquely interlocking web of State and Federal obligations, that continue to present increasing challenges. At the same time, it is becoming increasingly more difficult to resolve complex issues, whether with the tax authorities or through legislative change, where required. In addition to these challenges, we are also simultaneously on the cusp…