Modernising Business Communications Bill introduced – allowing electronic execution of documents, sending documents etc.

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The Government introduced the Treasury Laws Amendment (Modernising Business Communications) Bill 2022 into the House of Representatives on Thursday 17.2.2022. It will introduce what is termed a “global communications regime” for documents sent under the Corporations Act. Specially, Sch 1 of the Bill will amend the Corporations Act in relation to: signing and executing documents electronically; sending certain…

Bill introduced to allow the AAT to stay ATO collection proceedings whilst the AAT reviews the Commissioner’s objection decision

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The Government introduced the Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill 2022, into the House of Reps on Thursday 17.2.2022. It proposes to implement measurers including, the AAT being able to stay ATO recovery proceedings, as part of an AAT review of the Commissioner’s objection decision (see related TT article). the TAA53…

Whiddon v CofT – Foreign source gain from share swap assessable as ordinary income for taxpayer who had become resident

Tax Month - February 2021

On 10 February 2022, the AAT upheld the Commissioner’s assessment of a gain made on a complex arrangement from an exchange of shares and options, was assessable as ordinary income – as profit making arrangement or scheme. To  uphold the assessment, the AAT also had to find that the taxpayer was resident, in the relevant…

Perpetual Corporate Trust Ltd v Commissioner of State Revenue –  student accommodation exempt from SA land transfer duty – 1 semester stays too short to be ‘residential’ (GST meaning adopted)

Tax Month - February 2022

On 25 January 2022, the South Australian Supreme Court decided that purpose-built student accommodation facility was not used predominantly for residential purposes and therefore qualified for a stamp duty exemption. The Court used the GST case of Marana Holdings, to interpret ‘residential’ and ‘reside’ having some permanence or long-term nature. The facts were these. In September 2019…

Section 100A and Division 7A: looking back down the path to the ATO’s imminent new draft guidance (for consultation)

Tax Month - February 2022

The word is that next week (beginning 21.2.22), the ATO will release draft guidance on the anti-trust stripping s100A and the dreaded ‘deemed dividend’ provisions in Division 7A. We expect the following, for public consultation: (1) Draft Ruling on s100A; (2) Draft PCG on s100A; and Draft Determination on Division 7A. In the Tax Institute’s weekly member new email: TaxVine…

Mobbs v CofT – Payments and shares issued to a company providing individual’s services as a director, treated as individual’s income

Tax Month - February 2022

On 10 February 2022, the AAT decided that payments made by various entities, to a service company, for the individual’s services, as a director, were ordinary income of the individual (and not the service company). It reached a similar conclusion about shares that these entities, issued to the service company, to satisfy the invoices. The…

ZG Operations v Jamsek – on the same day the High Court reached the opposite conclusion to the CFMEU case (on an ’employee/contractor’ issue) but for the same ‘primacy of contract’ reasons

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HIGH COURT OF AUSTRALIA – On the same day (9.2.22), the High Court handed down two decisions, both allowing appeals from the Full Federal Court (FFC), on questions of whether a person was an employee or an Independent Contractor – for the purposes of claiming worker entitlements, which were available, if they were employees. The…

Budget super measures and temporary full expensing of capital expenses – Bill passed

Tax Month - February 2022

On 10 September 2022, the Senate passed the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 with no amendments. It therefore awaits assent. The Bill passes various Budget Superannuation measures, to encourage superannuation contributions, and a temporary extension of the measures to allow capital expenses to be deductible in…

Employee vs independent contractor: High Court rules contract is the source of the analysis (not subsequent conduct)

Tax Month - February 2021

In the High Court CFMEU v Personnel Contracting case (see related TT article), the Court held that the characterisation of a relationship, as that of an employee or an independent contractor, is answered by considering the rights and obligations as set out in the written contract (unless the contract is challenged as a sham or its…