Monthly Archives: March 2022

Hyder v CofT – ATO’s conduct ‘oppressive’ in pressing for payment of both alternative assessments – deferral decision set aside

The Federal Court has held that the ATO engaged in “oppressive conduct” in seeking to enforce payment under alternative assessments, where it was contended that tax on the income included in the assessments had already been paid by an associated third party. The taxable facts were these. A trust distributed 97% of its net income…

NSW payroll tax – Thomas and Naaz Pty Ltd v NSW Commissioner – taxpayer appeal in decision imposing payroll tax liability on a typical medical clinic

The taxpayer has appealed against the decision of the New South Wales Civil and Administrative Tribunal in Thomas and Naaz Pty Ltd and Chief Comr of State Revenue [2021] NSWCATAD 259 (3 September 2021, S Goodman SC). See related TT Article. The case concerned payments to doctors under Agreements between the owners of medical centres and the…

Appeal applications to the High Court – by the Commissioner, in the Shell Energy Holdings case (where a $2.3b exploration deduction was allowed under s40-80); and by Mr Kinghorn in his case relating to prosecution use of s264 compelled information

Shell Energy Holdings case The Commissioner has lodged an application for special leave to appeal to the High Court from the Full Federal Court decision in FCT v Shell Energy Holdings Australia Limited [2022] FCAFC 2 (Allsop CJ, Davies and Thawley JJ). In the Full Federal Court decision, the ATO lost its appeal – with the…

Plaskitt v Tax Practitioners Board – deregistration and 5-year ban upheld for misappropriation of client funds and failing to meet agent’s own tax obligations

On 18.2.22, the AAT upheld a TPB decision to terminate a tax agent’s registration and impose a 5-year ban on him re-applying for registration. The facts were theres. Mr P, in partnership with his wife, provided bookkeeping, accounting and taxation services. Following an investigation, the TPB terminated Mr P’s registration on the basis that he…

Kais Jewellery (Syd) Pty Ltd v’s CofT – Input tax credits denied as insufficient proof gold transactions occurred

On 11.3.222, the AAT held that ‘input tax credits’ claimed in relation to alleged purchases of scrap gold, totalling just over $2.34m, were denied as the “purchaser” failed to prove that the purchases occurred. The facts were these. Mr K was a jeweller who operated his business through a company (Kais Jewellery), which claimed input tax…

High Court has last word on ‘employee versus contractor’ – the CFMEU and Jamsek cases and the role of the contract in this

The Tax Institute’s Tax Policy and Advocacy team explored, in its weekly email to members: TaxVine (7, 11/3/22), two recent High Court decisions that considered the characterisation of workers as employees or contractors. Overview The recent decisions by the High Court in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022]…

Trustee for B & J Chung Trust v CofT – Deregistered trust company could not pursue AAT application (but why not re-register or get a new trustee?)

A recent AAT decision serves as a reminder that the AAT cannot review an objection decision made by or on behalf of a company if the company no longer exists. A director of a trustee company applied to the AAT for review of an ATO decision disallowing an objection to an assessment for penalties imposed…

Tas: Land tax reduction announced

On Monday 28.2.22, the Tasmanian Government announced land tax threshold changes as tax relief for property owners. The tax-free threshold for land tax will increase to $100,000 (from $50,000) while the upper threshold for land tax will be increased to $500,000 (from $400,000). The tax rate for land valued between $100,000 and $500,000 will also be…

Tas: Payroll tax relief for apprentices to be extended

On 8.3.22, the Tasmanian Government announced that legislation has been introduced to extend the Payroll Tax Rebate Scheme to 30 June 2024. The Scheme provides a rebate to employers for employing apprentices, trainees and youth employees. The Government said the Scheme supports around 3,000 apprentice, trainee and youth employee placements each year. [Tax Month – March 2022 – Previous…

Superannuation retirement income covenant: APRA/ASIC letter on how to implement the new covenant

APRA and ASIC have issued a joint letter to registrable superannuation entity (RSE) licensees setting out their expectations on the implementation of the retirement income covenant. The letter follows recent amendments to the SIS Act which require RSE licensees to formulate a retirement income strategy and publish a summary of the strategy on the entity’s website…