Merchant v CofT – decision to disqualify SMSF trustees – AAT would not defer the review until after tax objections relating to the same transaction were determined

The AAT has rejected an application, to adjourn its proceedings, for review of decisions to disqualify the applicants, as trustees of superannuation entities, pending the outcome of challenges to income tax assessments based on the disqualifying transactions.

See below for further details.

[Tax Month – April 2021]

JobMaker – Instrument allowing alternative means to report necessary information (other than through STP)

On Friday 16 April 2021, the Commissioner of Taxation made an instrument called the JobMaker Hiring Credit Reporting Obligations Amendment Instrument 2021 under s20(4) of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 and s27(3) of theCoronavirus Economic Response Package (Payments and Benefits) Rules 2020 (the Rules) and this instrument was registered on Tues 20.4.21. Its effect…

PAYG obligations for remediation payments made by financial institutions following the Hayne Banking Royal Commission – how might PAYG arise?

The ATO has released a fact sheet on its Legal Database outlining the PAYG withholding and reporting obligations for financial institutions that may arise from making remediation payments, following the Hayne Royal Commission into banking and financial services malpractice (eg. restitution for fees charged for no service). If you’re like me, you might be wondering how compensation…

Budget super reforms introduce ‘sovereign risk’ into the $3t super industry – how could that be so?

AustralianSuper chief Ian Silk has accused the Morrison government of introducing “sovereign risk” to the $3 trillion superannuation system – but how could that be so? Is legislation heavily crimping advertising funds really ‘sovereign risk’, or is it the power to promulgate regulations that ban certain superfund transactions? See below for details. [Tax Month –…

Janet Yellen decries the global ‘race to the bottom’ on Corporate Taxes – Don’s 21% to be replaced with Joe’s 28% to fund a belated COVID $3t stimulus package

Dr Yellen was appointed chair of US Federal Reserve Bank by President Obama, was not reappointed by President Trump, and when America went back to a Democrat President, Joe Biden appointed her Secretary of the Treasury. In early April 2021, she gave broad brush speech on US tax policy, to the Chicago Council on Global…

Victoria Power Networks Pty Ltd v CofT – ATO Decision impact statement – customer connection contributions to Electricity Distributors and their rebates to customers

The ATO has issued a decision impact statement on Victoria Power Networks Pty Ltd v FCT [2020] FCAFC 169 (see earlier TT article). This upheld the earlier decision of Moshinsky J in the Federal Court (same parties) [2019] FCA 77 – holding that contributions, customers made to Distributors, were ‘ordinary income’ but the Court changed…

Income Tax Assessment (1997 Act) Regulations 2021 registered and commence 1 April 2021 – replacing the ‘sunsetted’ 1997 Regulations

On 2 March 2021 the Assistant Treasurer made, and on 4 March 2021 the following regulations were registered on the Federal Register of Legislation – Income Tax Assessment (1997 Act) Regulations 2021 & the Treasury Laws Amendment (Income Tax Assessment Repeal and Consequential Amendments) Regulations 2021. The latter (the ‘Repeal’ Regs) repealed the ITA Regs 1997 that…

Tax Month – April 2021

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – April 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 ______________________________________________________________________________ COMPILING…