Individuals’ tax gap analysis for 2014 & 2015 years released – $8.7b v’s $2.5b for corporates (but 6.4% of total v’s 5.5%) – more agent prepared returns adjusted (wake up call)

On Thursday 12 July 2018, the Commissioner released his income tax ‘gap analysis’ of gap between the tax individuals (not in business) ought to have paid, had they been fully compliant and the tax they actually paid. The head line is that the ‘gap’ is bigger than the corporate sector, but there is more to…

ASX Corporate Governance Council’s Principles and Recommendations – consultation on whether an entity’s board must consider the views and interests of other stakeholders, such as customers, suppliers, consumers, tax payers and others

Article appearing in the 4/7/18 KPMG ‘Daily Tax News’ Amongst the changing governance landscape with respect to directors’ duties and liabilities, it is important to remember that the general duties of directors are owed to the company for which they are a director. The Australian Securities Exchange (ASX) consultation process currently underway to update the…

Tax Related Bills still outstanding – including: $20k ‘write-off’; corporate tax cuts; Hybrid Mismatch Rules; Multi-Lateral Instrument; Black Economy Bill; and non-resident ‘main residence’ abolition

The last Parliamentary Winter sittings were held in the last week of June 2018, and there are quite a few significant tax bills still before Parliament that are on hold until Parliament resumes again on 13 August. Corporate Tax Cuts – the remaining ‘tranche’: The most significant is the bill related to company tax rate…

Allocation of Profits in Professional Firms – ATO advice to Working Group as of 28 June 2018 – definition of ‘professsionals’ (gateway) – factors in achieving structure neutral guidance focussing on economic outcomes

ATO advice to Professional Firms Working Group as of 28 June 2018 Thank you for your continued input and participation as a member of the Professional Firms Working Group. Your suggestions continue to provide valuable insights which provide a richer understanding of the issues and have assisted in enabling us to progress the review of…

Tas Payroll Tax & Duty: new Act reduces payroll tax rate to 4%, imposes additional 3% point duty surcharge on foreigners, and gives a 50% duty concession to certain first home buyers and ‘downsizers’

The Taxation Related Legislation (Housing Availability and Payroll Relief) Bill 2018 received Assent on 29 June 2018 as Act No 5 of 2018. It had passed the Parliament with 2 amendments from the Legislative Council concerning the removal of the reference to “greater Hobart area” and its definition from the new section 19E of the Land Tax…

Rus and FCT – 16 hectare vacant land with 10% office not an ‘active asset’ for Small Business CGT Concession purposes – objection to private ruling fails and new facts not allowed

A taxpayer has unsuccessfully challenged a private ruling that land which was mostly vacant was not an “active asset” for the purpose of the CGT small business concessions. These concessions are found in Div 152 of the ITAA97 and give a (further) 50% discount, up to $500k superannuation contributions and a rollover of any remaining…

Stapled Structures for Infrastructure – whether Part IVA ‘tax avoidance’ provisions could apply – as the Commissioner postulates in Tax Alert TA 2017/1 (unlikely)

A paper prepared for the Tax Institute’s National Infrastructure Conference, by Mr Greg Davies QC and Mr Eugene Wheelahan of the Victorian Bar – on 17 May 2018.   1   Introduction In its Taxpayer Alert, TA 2017/1, the Australian Taxation Office (ATO) states that it is reviewing arrangements which “attempt to fragment integrated trading businesses…

R&D Tax Incentive – R&D proposed changes released – $150m threshold, offset at corporate rate plus 13.5% points, $4m cap, higher intensity

On 8 May 2018, the Government announced it will reform the Research and Development Tax Incentive (R&DTI) to better target the program and improve its integrity and fiscal affordability in response to the recommendations of the 2016 Review of the R&D Tax Incentive.  And on 29 June 2018, Treasury released its consultation material: A Consultation…

Newmont Canada FN Holdings ULC v FCT – Commissioner refused stay of proceedings pending outcome of Resource Capital Fund IV case – Div 855 ‘land rich’ decision

The Federal Court has refused to grant the Tax Office a stay of proceedings in a case involving Div 855 ITAA 1997, pending the outcome of an appeal in a different, but similar, issue. The taxpayer appealed under Pt IVC TAA against assessments for the 2011 income year totalling just over $120m (the Newmont appeals). The…