Birdseye v Tax Practitioners Board – Board’s de-registration decision upheld (non-compliance with personal affairs) but 5-year ban set aside (ATO/TPB findings largely rejected)

On 20 April 2021, the AAT affirmed decisions of the Tax Practitioners Board (TPB) to cancel the tax agent registrations of an individual (Mr Birdseye) and a company he controlled (Claim IT (SA) Pty Ltd), but has set aside a 5-year ban on applying to be registered again. Nick Birdseye practiced in Adelaide and might be…

‘Your Future, Your Super – Exposure Draft of Amending Regs to effect – Single Default Accounts, Underperforming funds disclosure & sanctions, improving accountability at annual members’ meetings etc.

On Wed 28.4.21, Treasury released 3 sets of exposure draft regulations proposing to support the Government’s Your Future, Your Super (YFYS) package of super reforms announced in the 2020-21 Budget. The Regulations will:    (1) Outline the methodology for the annual performance test and re-opening test, as well as requirements for notifications to members;   (2) Prescribe the definition…

Superannuation: Excess non-concessional contributions cap ($110k) – ATO post explaining options and procedures

On 27 April 2021, the ATO posted an article on it’s website headed: ‘If you exceed your non-concessional contributions cap. This refers to the $110,000 cap on non-concessional contributions to a complying superannuation fund. It sets out the two options available to you – the first being to take your non-concessional (post tax) money out…

Illegal “phoenix” activity – 62 year old charged with dishonestly arranging for insolvent entities to incur $850 of PAYGw which was not paid to the ATO

On Tues 27.4.21, the ATO posted a statement on its website, about a 62 year old man who has been charged for illegal “phoenix” activity. The Serious Financial Crime Taskforce (SFCT) investigation, led by the ATO and the AFP, alleges that the man did not remit PAYG withheld from employees’ wages to the ATO, totalling $845,066.…

‘Client identity verification’ will become mandatory, after a voluntary phase-in, for ‘Tax Practitioners’ dealing with the ATO – Consultation Paper proposes guidelines

On 27.4.21, the ATO released a consultation paper seeking feedback from the tax profession on its proposed guidelines that set a minimum standard on due diligence for tax practitioners when engaging new clients, or where there is suspicion that a client may have had their identity compromised. These guidelines are set to address the growing risk of identity…

PCG 2021/D2 – ‘Allocation of professional firm profits’ – Professional Bodies make submissions to ATO consultation process (taxpayers corralled too narrowly)

The professional bodies have released their joint submission to ATO, as part of its consultation, regarding draft Practical Compliance Guideline PCG 2021/D2 (Draft Guideline) – which is about how it will allocate auditing resources to structures and other arrangements professional firms put in place, that affect who the end recipient is, of the income of…

‘Reform of the Tax System’ (or RATS as it was known) – a scholarly review of unactioned 1975 Asprey Report to the 1985 Hawke Keating reforms that delivered that report

The 1985 ‘Reform of the Tax System’ (or RATS as it was known) changed the landscape of Australian Tax, giving us things like capital gains tax (CGT); franking of dividends (to end the double taxation of company profits distributed as dividends), the Fringe Benefits Tax (FBT) and more. For those of us old enough to…

Corporate Tax Residency – Professor Stewarts paper, from De Beers through to adoption of the Board of Tax’s recommendation

A scholarly review the history of the corporate tax residency definition and case law – both antecedent and subsequent, has been prepared by Professor Miranda Stewart of Melbourne University and is available in this article. There are also links to some supporting and related material. See below for the paper and some further details. [Tax…

PCG 2021/D2 on allocation of professional firm profits (ATO stance on ‘income splitting’ etc.) – LCA submission as part of ‘consultation’

On Monday 1.3.2021, the ATO released a DRAFT Practical Compliance Guideline PCG 2021/D2: Allocation of professional firm profits – ATO compliance approach (see related TT article about this). On 15 April 2021, the Law Council of Australia made its submission to this proposed PCG – criticising both its foundations and its execution. See below for…