Author Archives: John Morgan

ASIC guidance on companies’ whistleblower policies due by 1 Jan 2020 (RG 270) and relief to small not-for-profits and charities (sub-$1m revenue)

On Wednesday 13 November 2019, ASIC posted Media Release 19-308MR – ASIC gives guidance on companies’ whistleblower policies and relief to small not-for-profits – relating to the ‘whistleblower’ protections that have been effective from 1 July 2019, and the whistleblower policies that must be in place by 1 January 2020. See below for the Media Release. [Tax…

Lordianto v AFP; Kalimuthu v AFP – High Court upholds ‘Proceeds of Crime’ orders for money laundering offences

On Wednesday, 13 November 2019, the High Court rejected the appeal, of two cases of ‘cuckoo-smurfing’. The Australian Federal Police (AFP) were granted orders under s 19 of the Proceeds of Crime Act 2002 (POC Act) restraining any dealing with the bank accounts. The appellants applied to have their interest in the bank accounts excluded from the…

Reid v CofT – Deductions denied for $72k work-related car expenses and $34k of work-related home office and other expenses (failure to substantiate)

On 12 November 2019, the AAT denied a taxpayer’s claims for $72,000 in work-related car expenses and $34,000 in work-related home office and other expenses, on the basis that they were not relevantly ‘substantiated’.

See below for a summary of the case.

[Tax Month – November 2019]

 

Employers face FBT hit on staff car parking – change of ATO interpretation of existing law could create FBT liability or increase it radically

On 14 November 2019, the Australian Financial Review published an article by Political Reporter: Tom McIlroy, entitled: Employers face FBT hit on staff car parking – which is about penalty parking rates on which employer might have to pay FBT, after the Commissioner proposes to change his ruling. See related Tax Technical article. See below for…

TR 2019/D5 – FBT on car parking benefits – ruling updated to increase FBT so it is based on penalty all day rates to discourage all day parking

On 13 November 2019, the ATO issued TR 2019/D5 – dealing with FBT on employer provided car parking. It replaces TR 96/26, after the 2010 Virgin Blue Airlines and the 2014 Qantas Airways cases – making several changes. See related Tax Technical article.

See below for a summary.

[Tax Month – November 2019]

 

 

Victoria fights High Court challenge to vehicle stamp duty – ‘under s86 of the Constitution, which reserves raising ‘duties of customs and of excise’ exclusively to the Commonwealth

On 11 Nov 2019, the Australian Financial Review published an article by Political Reporter: Tom McIlroy, entitled: Victoria fights High Court challenge to vehicle stamp duty. This is a reference to s86 of the Constitution of Australia, that reserves the power to levy ‘duties of customs and of excise’ exclusively to the Commonwealth of Australia.…

Inspector General of Tax – wants tougher whistleblower protections for ATO officers, blowing the whistle on ATO conduct

On 11 November 2019, the Australian Financial Review published an article, by Political Reporter: Tom McIlroy, entitled Tax inspector wants tougher whistleblower protections.  This is ‘whistleblower’ relief for ATO officers, wanting to disclose what they think is mis-practice within the ATO.

See below for the article.

[Tax Month – November 2019]

 

 

 

TR 2019/2 – Trusts arrangements that purport to avoid CGT on an asset, eventually passed to a third party, by exploiting the subdivision 126-G restructure rollover

On 31 October 2019, the ATO released TR 2019/2, which covers its concerns with unit trust arrangements, that purport to avoid CGT on transactions that eventually pass ownership of an asset, to a third party, without an CGT, by exploiting the subdivision 126-G restructure rollover.

See below for further details.

[Tax Month – November 2019]

Treasury Laws Amendment (International Tax Agreements) Bill 2019 passed – giving legislative force to the Australia-Israel DTA and introducing a domestic ‘deemed source rule’, for DTA purposes

On 14 Nov 2019, Parliament passed legislation to give effect to the new Australia-Israel Double Tax Agreement, and introduce a new Div 764 into our Domestic law, for DTA purposes.

See below for a summary of the Bill (as passed).

[Tax Month – November 2019]

 

Draft guidelines on application for the ‘economic infrastructure staples tax concession’ – which reduces the 30% MIT tax withholding, for non-residents, down to 15%

On Thursday 14.11.19, Treasury released a draft ‘Guidance Note’ for potential applicants, to the Federal Treasurer, for the economic infrastructure staples tax concession. Comments are due by 17 Jan 2020. See below for a summary of this concession and the consultation. FJM 17.19 [Tax Month – November 2019]   The concession provides one of the exceptions, to…