Re Chen & Anor and FCT – GST: margin scheme not applicable as no written agreement [35]

The AAT has affirmed the Commissioner’s decision concerning the GST liability of 2 taxpayers associated with the sale of real property between 2008 and 2009. The taxpayers had purchased property, which was eventually subdivided and on-sold. They contended, among other things, that they “never had an intention of not including GST in returns or defrauding…

ATO prosecutes over 400 for tax and super offences this last quarter [32]

In figures released Tue 11.12.2012, the ATO said that, in the quarter from 1 July 2012 to 30 September 2012, it had prosecuted 465 individuals and companies for tax and superannuation criminal offences resulting in over $1.56m in fines and penalties. Of the prosecutions, the ATO said: 13 people were convicted of serious tax and superannuation related criminal offences,…

GIC and SIC rates released for January-March 2013 quarter – base rate will be 3.24%; SIC 6.24% and GIC 10.24% [31]

The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 3rd quarter of the 2012-13 financial year (ie 1 January 2013 to 31 March 2013) are as follows: GIC annual rate is 10.24%; GIC daily compounding rate is 0.02805479%; SIC annual rate is 6.24%; and SIC daily compounding rate is…

CR 2012/118-123 – Early retirement scheme; R&D; ETP; stapled security; takeover; contingent shares [30]

The ATO, Wed 19.12.2012, issued the following Class Rulings: CR 2012/118: Early retirement scheme – University of Tasmania. It applies from 19 December 2012 to 31 December 2013. Broadly, the Ruling states that the early retirement scheme to be implemented by the University of Tasmania is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. CR…

CR 2012/110-114 – R&D; issues of convertible preferences shares; return of capital [29]

The ATO on Wed 5.12.2012 issued the following Class Rulings: CR 2012/110: R&D concession: membership funding for the ACA Low Emissions Technologies Program. It applies from 1 July 2007 to 30 June 2011. Among other things, the Ruling states that to the extent contributions made in an income year are $1,000 or more and are incurred directly in respect of…

TD 2012/D12 – Consolidated special purpose financial statements and foreign exchange translation [28]

According to this Draft TD, released on Wed 19.12.2012, a consolidated special purpose financial report (SPFS) of a head company of a tax consolidated group cannot satisfy clause 1.1 of Sch 2 to the Income Tax Assessment Regulations 1997where transactions within the same class are translated using inconsistent methodologies. DATE OF EFFECT: When the final Determination…