John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

PCG 2018/D3 finalised as PCG 2018/9 on ‘central management and control’ – extending the ‘no ATO audit’ period to 30 June 2019

Tax Month - December 2018

Key News Summary: PCG 2018/D3 as been finalised as PCG 2018/9 extending the ‘non-audit’ period to 30 June 2019. This PCG gives practical guidance on the ‘central management and control’ (CM&C) issue for company tax ‘residency’ purposes.   On Wednesday 5 December 2018, the ATO finalised PCG 2018/D3 – merely extending the ‘non-audit’ period from 13 December 2018 to 30 June 2019 (in…

SA: 2018 Budget Bill receives Assent

Tax Month - December 2018

The Statutes Amendment and Repeal (Budget Measures) Bill 2018 received Assent on 22 November 2018 as Act No 35 of 2018. It contains amendments to give effect to certain revenue measures announced in the 2018 South Australian Budget. The Bill contains a number of state revenue measures including: Third Party Reporting; Payroll Tax; Stamp Duty; and Land…

WA: Revenue Bills introduce major changes

Tax Month - December 2018

The Revenue Laws Amendment Bill 2018 was introduced in the WA Legislative Assembly on 29 November 2018. It contains amendments to the Duties Act 2008, Land Tax Assessment Act 2002 and Pay-roll Tax Assessment Act 2002. These amendments propose to address significant duty leakage, ensure certain taxpayer exemptions and concessions apply correctly, and improve the efficiency of…

Qld: payroll tax – Xede Pty Ltd & Ors v Comr of State Revenue – law didn’t allow a ‘sub-group’ of 4 dependent companies, to be excluded from the remaining 10 companies in a prima-facie group – even though relevantly independent of them

Tax Month - December 2018

The Qld Civil and Administrative Tribunal has effectively refused an application by taxpayers for exclusion orders that would have created 4 separate groups for payroll tax purposes. ‘Groups’ are relevant in payroll tax because there is a substantial tax free amount of wages that don’t attract tax, and payroll tax could be avoided by carrying…

NSW Payroll Tax – Chief Comr of State Revenue v Boss Constructions (NSW) Pty Ltd – estoppel (to avoid Commissioner’s unconscionable change of position) could not alter the statutory 21 day period for setting aside a Statutory Demand

Tax Month - December 2018

This is a case about the the collection of NSW payroll tax and the Chief Commissioner’s use of the Statutory Demand procedure in the Corporations Act 2001. The issue was whether an estoppel can extend (or alter the start date) for a statutory time period – in this case, the 21 days, in which a…

Vic: Vacant residential land tax’ and ‘absentee owner surcharge’ notifications due by 15 January 2019

Tax Month - December 2018

The State Revenue Office of Victoria (SRO) has advised that ‘notifications’ due on 15 January 2019, for the following Victorian taxes: The vacant residential land tax – a tax imposed on the owners of land (in 16 Council areas), if that land has been relevantly ‘vacant’ for more than 6 (non-continuous) months in the preceding year.…

Vic Duty – Rotary Club of Melbourne Inc not a charity and land transfer duty payable – promoting “high ethical standards in business and professions” not relevantly ‘charitable’

Tax Month - December 2018

The Victorian Supreme Court has dismissed a taxpayer’s appeal effectively upholding a Victorian Civil and Administrative Tribunal decision: [2018] VCAT 1257, that the taxpayer could not be characterised as a body established for charitable purposes. The issue was whether a transfer of land, to the Taxpayer, was exempt from duty, under s45 of the Duties Act 2000, which…

CofT v Cassaniti – Full Federal Court affirms PAYG amounts were “withheld” from salary or wages and the employee was entitled to tax credits under s18-15 of the TAA53

Tax Month - December 2018

The Full Federal Court has confirmed that PAYG amounts were “withheld” from a taxpayer’s salary or wages so that she was entitled to a tax credit, despite the amounts never being remitted to the ATO by her employers. The taxpayer was employed by 3 companies over the relevant years which provided her services as an…

EU compromise on ‘temporary’ digital tax blocked by group of European countries as 4 December 2018 deadline looms – whilst various states introduce their own or are getting ready to

Tax Month - December 2018

The EU has been considering a temporary turnover tax on the revenues of large companies’ turnover from certain digital supplies, whilst waiting for a more permanent solution to arise out of the ‘Base Erosion and Profit Shifting (BEPS) project running under the auspices of the OECD and G20. Indeed, the UK announced a 2% version…

Decision Impact Statement on Aussiegolfa case – non-arm’s length tenant, did not breach SMSF’s s62 ‘sole purpose test’ but ‘in-house asset’ test breached because the Sub-Trust was the relevant ‘fund’ for ‘related party’ definition purposes

Tax Month - December 2018

On Monday 3.12.18, the ATO issued a Decision Impact Statement (DIS) on the Full Federal Court’s decision in Aussiegolfa Pty Ltd (Trustee) v FCT [2018] FCAFC 122. Aussiegolfa was the trustee of an SMSF, that invested in a publicly offered managed investment scheme: the DomaCom Fund. This ‘Master Trust’ provided for classes of unit holder,…