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

ATO finalises its position in relation to SMSF event-based reporting – annually in respect of members with less than $1m transfer balance account balances and quarterly for others

Tax Month - November 2017

The $1.6m transfer balance cap legislation, carries with it an obligation on trustees to submit a ‘Transfer Balance Account Report’ (TBAR) to the ATO about events that impact a member’s transfer balance accounts. This is under s390-5 of the TAA1 and the relevant determination made under that section. (See also Div 294 of the ITAA97 regarding ‘Transfer balance…

Treasury publishes Exposure Draft of legislation requiring purchasers of new residential premises to pay GST

Tax Month - November 2017

On 6 November 2017 Treasury published an Exposure Draft of legislation that will require purchasers of new residential premises and lots in new residential subdivisions to pay an amount equal 1/11th of the purchase price directly to the ATO at or before settlement. The legislation was announced in the 2017-18 Budget and views on the…

Watts v CofT – work related deductions denied – expensive cloths required but not vocationally specific and for travel expenses up to the Commissioner’s reasonable limits, although not incurred – 50% penalty upheld

Tax Month - November 2017

The AAT has upheld the Commissioner’s decision to disallow a range of work related expenses, claimed by a public servant and upheld a decision to impost a 50% administrative penalty for being reckless. The taxpayer, an employee with the Department of Finance, claimed various work-related travel expenses, clothing expenses and self-education expenses in her tax…

ATO statement regarding the ‘Paradise Papers’ – ATO with JITSIC will add this, to their efforts in processing the ‘Panama Papers’ – targeting Australian connections

Tax Month - November 2017

On 6 November 2017 the International Consortium of Investigative Journalists (ICIJ) reported that they had significant amounts of leaked information from an offshore law firm Appleby in Bermuda – that they called the ‘Paradise Papers’. The ATO was anticipating this release and issued the following media release, to coincide with the ICIJ release of the Paradise Papers.…

ICIJ releases The ‘Paradise Papers’ (Bermuda) – echoes of the ‘Panama Papers’ – 13 million documents, from over 50 years leaked from Appleby law firm involving multi-nationals, politicians, political donors (and more … )

Tax Month - November 2017

On Sunday 5 November 2017, the International Consortium of Investigative Journalists issued this media release. On that day the ICIJ released The Paradise Papers, a global investigation that reveals the offshore activities of some of the world’s most powerful people and companies. ICIJ and 95 media partners explored 13.4 million leaked files from a combination of…

TR 2017/D7 – Commissioner will expand the scope of his ruling on when a company ‘carries on a business’ to the substantive law (not just when the 27.5% lower corporate rate applies)

Tax Month - November 2017

The staged introduction of the 27.5% lower rate of company tax began on 1 July 2016, using a ‘carrying on business’ test, probably intending it to exempt companies receiving ‘passive’ investment income. That, however, hit headwinds, when the Commissioner started making his views known in a form that he later issued as TR 2017/D7. The…

Vic taxes: State Taxation Acts Further Amendment Bill 2017 – Congestion Tax exemption; foreign purchaser additional duty; first home buyer duty concession; absentee owners land tax surcharge; land tax exemption; payroll tax exemption for training organisations

Tax Month - November 2017

On 31 October 2017, the Victorian Government introduced the State Taxation Acts Further Amendment Bill 2017 into the Victorian Legislative Assembly and was read a second time the following day. It will amend various taxing statutes, in the ways and from the commencing dates set out below. Part 2, which amends the Congestion Levy Act…

Class Ruling CR 2017/74 – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares

Tax Month - November 2017

On Wed 1.11.17, the ATO  issued Class Ruling CR 2017/74 (Spicers Ltd – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares). The Ruling discusses the CGT consequences of CGT event A1 happening when unitholders of PaperlinX SPS Trust exchanged their units for ordinary shares in Spicer Ltd. DATE…