On 5 February 2018, the Federal Court set aside the Commissioner’s assessments, issued to two limited partnerships, for profits they made on their respective investments in the shares of an Australian mining company: Talison Lithium Limited (Lithium Co). In 2007, two limited liability partnerships: Resource Capital Fund IV LP (Resource IV) and Resource Capital Fund…
On 8 February 2018, Treasury released draft legislation to give the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) the force of law in Australia. Treasury have asked for submissions by 23 February 2018. On 7 June 2017, Australia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent…
The Federal Court has ruled 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. Justice Robertson, summarised the issues and facts this way: The applicant, Mrs Mariolina Cassaniti, seeks declarations that she…
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…
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…
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%…
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,…
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’,…
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…
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:…
