In a lengthy decision, the NSW Supreme Court has allowed a taxpayer’s appeal and revoked payroll tax assessments concerning out of hours cleaning services provided to supermarkets and other businesses. The taxpayer (JP) provided contract cleaning and property maintenance services to commercial and industrial clients, including supermarkets operated by Franklins Pty Ltd. To provide those…
The Full Federal Court has dismissed a taxpayer company’s appeal (from [2015] FCA 1381) and held that the Commissioner’s notice to the company to give security for an unpaid GST liability was constitutional and valid. In September 2014, the Commissioner gave a notice under s255-105 of Sch 1 to the TAA to the taxpayer requiring it to give…
16/10/2017 – Governments have dismantled, or are in the process of amending, nearly 100 preferential tax regimes as part of the OECD/G20 BEPS standards to improve the international tax framework, according to a progress report released today. The report provides details on the outcome of peer reviews undertaken of 164 preferential tax regimes identified amongst the…
On Wed 18.10.2017, the Commissioner issued 2 Taxation Determinations on the application of the foreign equity distribution rules in Subdiv 768-A of the ITAA 1997 where the recipient is a corporate partner in a partnership or a corporate beneficiary of a trust. Under Subdiv 768-A, a foreign equity distribution is treated as NANE income if the…
The Commissioner issued draft Ruling TR 2017/D8 on Wed 18.10.2017. It explains the methods taxpayers can use to return income derived, and recognise expenses incurred, in long-term construction projects (ie those straddling 2 or more income years). The ATO describes TR 2017/D8 as a “refresh” of the former ruling on this matter, IT 2450. The Draft…
On Wed 18.10.2017, the Commissioner issued draft ruling: TR 2017/D7 on whether a company is ‘carrying on a business’ for the purpose of the staged reduction of company tax rates, which is to be found in s23AA of the Income Tax Rates Act 1986. That section specifies which companies are to be taxed at the…
The Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 was introduced in the House of Reps on Wednesday 18 October 2017. This Bill is designed to substitute a ‘bright line’ test for companies that are to be taxed at the lower 27.5%, instead of the ‘carrying on business’ test that has applied since the…
Minister O’Dwyer made the GST determination: A New Tax System (Goods and Services Tax) (Incidental Valuable Metal Goods) Determination 2017 (No 1) on Monday 16 Oct 2017 and it was registered on the Federal Register of Legislation on Wed 18.10.2017. The Determination specifies a class of goods that are ‘incidental valuable metal goods’ for the purposes…
The Treasury Laws Amendment (2017 Measures No 6) Bill 2017 passed all stages of Parliament, without amendment on Thur 19.10.2017 and received Royal Assent as Act No. 118 on Monday 30.10.17. It amends the GST Act to ensure that supplies of digital currency receive equivalent GST treatment to supplies of money, particularly foreign currency (this was announced in…
The Government introduced the Treasury Laws Amendment (Junior Minerals Exploration Incentive) Bill 2017 on Thur 19.10.2017. It proposes to amend the tax law to replace the former Exploration Development Incentive (EDI) with the Junior Minerals Exploration Incentive (JMEI). Like the EDI, the JMEI would provide a tax incentive to invest in small minerals exploration companies undertaking greenfields minerals exploration in Australia.…
