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

Draft Treasury Laws Amendment (Measures # ??) Bill 2018 – Small Business CGT concession ‘integrity’ measures, on sale of shares or units: ‘see through’ active assets test; new taxpayer requirement; new ‘object entity’ requirement (to carry on business)

Tax Month - February 2018

On 8 February 2018, Treasury put up, an exposure draft of the Treasury Laws Amendment (Measures # ??) Bill 2018, on its website. This Bill proposes amendments to to deal with ‘integrity’ concerns for the small business CGT concessions‘. The Draft is for consultation, and Treasury will take submissions, until 28 February 2018. [Treasury website: Consultation…

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – 80% passive income test (to retain 30% tax/franking rate) passes Lower House with one Government Amendment

Tax Month - February 2018

The House of Representatives passed the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017  on Thur 8.2.2018, with 1 Government amendment. The purpose of the Bill is to change the basis on which a company can retain the 30% tax rate. This is for companies that otherwise qualify for the lower 27.5% tax/franking…

Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 passes Lower House – providing remaining 8 years of Government’s reduction in tax rates – down to 25% for all companies

Tax Month - February 2018

On Thursday 8.2.18, the House of Representatives passed the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017,  without amendment, and the Bill now moves to the Senate. The Bill provides for the remaining 8 years of the Government’s plan to reduce tax rates down, so that all companies pay tax at a 25%…

Treasury Laws Amendment (2018 Measures No 1) Bill 2018 – introduced – super fund merger relief to 30 June 2020; ATO to approve ‘early releases’; extend cost recovery by Super Levy; payments to members with a ‘terminal disease’

Tax Month - February 2018

On Wednesday 7.2.18, the Government introduced the Treasury Laws Amendment (2018 Measures No 1) Bill 2018, and on 27.2.2018, the Bill passed the Lower House, unamended. Schedules 1, 2 , 3 & 4 of which propose the following superannuation related amendments. Relief for merging super funds – the Bill proposes to amend the ITAA 1997,…

Treasury Laws Amendment (2018 Measures No 1) Bill 2018 introduced: purchaser GST withholding on residential property commercing 1 July 2018 – including notices by all vendors (whether ‘new’ or not and for vacant residential land)

Tax Month - February 2018

The Government introduced the Treasury Laws Amendment (2018 Measures No 1) Bill 2018, into the Lower House of Parliament on Wednesday 7.2.2018 and it was passed the Lower House, unamended, on 27.2.2018. In Schedule 5, it proposes amendments to introduce new GST withholding provisions. These provisions will require purchasers of ‘new residential premises’, and of ‘potential residential land’,…

CofT v Hacon Pty Ltd & Ors – Commissioner does not have to give private ruling on Part IVA for proposed restructure – Taxpayer seeks leave to appeal to the High Court

Tax Month - February 2018

The taxpayers has lodged an application for special leave to appeal to the High Court from the Full Federal Court decision in CofT v Hacon Pty Ltd & Ors [2017] FCAFC 181. The Full Federal Court had held that the Commissioner was entitled to refuse to make a private ruling, under the discretion in s357-110(1)(a) in…

CR 2018/7 – Return of capital by way of in specie distribution as part of restructuring of Eneabba Gas Ltd- no ‘demerger relief’ available & resulting consequences

Tax Month - January 2018

On Wed 31.1.2018, the ATO issued Class Ruling CR 2018/7 (Eneabba Gas Limited – return of capital by way of in specie distribution). It explains the tax consequences for shareholders of Eneabba Gas Ltd (ENB) who received an in specie distribution of UIL Energy Ltd (UIL) convertible redeemable preference shares in September 2016. The ATO says that:…

DIS – Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v CofT – ATO accepts FFC decision that the $6.2b Optus buy-back amount was a ‘dividend’ correctly giving rise to the $452m withholding tax

Tax Month - January 2018, Uncategorized

The ATO has issued a Decision Impact Statement on the Full Federal Court decision in Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v FCT [2017] FCAFC 71, which held that an off-market share buy back receipt was a ‘dividend’ to the overseas recipient and that and the withholding tax paid was correctly paid…

Sharpcan Pty Ltd v CofT – Expenditure on Victorian ‘gaming machine entitlements’ held deductible but, if capital, it was not ‘black-hole’ deductible over 5 years because it ‘enhanced’ the value of goodwill (before Pagone J as DP)

Tax Month - January 2018

The AAT held that the taxpayer was correct in claiming certain expenditure, on ‘gaming machine entitlements’. The deductions were held to have been allowable, for the whole of the expenditure, in the year it was ‘incurred’, under the provision allowing ‘general deductions’, in s8-1 of the Income Tax Assessment Act 1997 (ITAA97). These ‘gaming machine…