Protecting superannuation entitlements: draft legislation released – to increase ATO’s power to detect and collect unpaid SGC amounts etc.

On 24 January, 2018, the Minister for Revenue released a draft Bill and announced other measures intended to give effect to its Superannuation Guarantee (SG) Integrity Package (which she announced on 29 August 2017). The draft Bill would: allow the ATO, in cases where employers fail to comply with their SG obligations, to issue directions to pay unpaid…

Revised TPP deal nearly done without US – remaining 11 agree on a raft of tariffs to be eliminated or reduced and better service export conditions

Apparently a revised Trans-Pacific Partnership between Australia and 10 other countries will be signed soon. The 11 countries are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam. This is what the Trade Minister: Steven Ciobo indicated in an interview with the ABC’s Fran Kelly (see transcript on Minister’s site). He said: “Well as they…

Class Rulings: CR 2018/4-6 – Govt Bonds exchanged for Chess Depository Instruments, scrip for scrip roll-over relief confirmed for merger, scrip for scrip relief also available for Tatts’ merger with Tabcorp in Dec 2017

Three Class Rulings were released by the ATO on Wed 24.1.2018: CR 2018/4 – Australian Government Bond holders electing to exchange bonds for CHESS Depository Interests (CDIs). It states that CGT event H2 will occur when a bondholder chooses to exchange a bond for a CDI in that bond, but that there will be no…

PCG 2018/1 – Thin cap rules for outward investing Australian bank’s – calculating their ‘adjusted average equity capital’

The Commissioner released Practical Compliance Guideline PCG 2018/1, on Wed 24.1.2018. It explains how the ATO will administer s820-300(3) of the ITAA 1997 (this is the thin capitalisation rule for outward investing banks/ADI’s and sits within Subdiv 820-D, which is the thin cap rules for outward investing entities). This section (reproduced below): Applies to outward investing banks…

A much simpler super system – Bob’s ‘15% – 15% – 0% system’ – take a look inside

On Thursday 25 January 2018, the Tax Institute’s Senior Tax Counsel: Mr Bob Deutsch proposed a remedy to the unutterable complexity of Australia’s superannuation system. This was in the Institute’s weekly ‘Tax Vine’ publication #2, 25 January 2018. He proposes, what he calls a “15%, 15%, 0%” system for, respectively, contributions tax, earnings tax and employee…

De Figueiredo v CofT – Receipt of $3.6m Glencore shares was assessable as a non-contingent financial benefit on dismantling a deferred remuneration scheme for an IPO

The AAT has found that a taxpayer’s assessable income, for the year ended 30 June 2011, includes the amount of $3,610,467 million, being the value of 16 shares, in a new holding company: Glencore International PLC. This was so, because the taxpayer exchanged his ‘Profit Participation Units’, in a subsidiary, as part of the float of the…

GST administration annual performance report 2016–17 by ATO – $59.8m collected/4.3% increase; low value goods; digital economy & currency; sharing economy (Uber); fewer objections; more debt

On 25 January 2018 (one day before Australia Day), the Deputy Commissioner – Indirect Taxation: Tim Dyce, presented the Commissioner’s ‘GST administration annual performance report for 2016–17’ and uploaded the summary set out below. The principal points were as follows. The ATO’s collections growth this year, while not quite as high as last year, but…

A & A Property Developers v MCCA Asset Management Ltd – inserting merely ‘GST’ in the box (instead of ‘plus GST’) was sufficient to get the purchaser of the land to pay the vendor extra for its GST liability – Victorian Court of Appeal

In December 2017 the Victorian Court of Appeal allowed the appeal brought by the vendor in A & A Property Developers Pty Ltd v MCCA Asset Management Ltd as trustee for the MCCA Property Fund [2017] VSCA 365. The Court found that the insertion of the words “GST”, rather than “plus GST”, in the Particulars of Sale,…