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

DCT v Arora – Director penalty notices for $1.9m upheld – it did not matter that the liquidator might pay, that he’d tried to get finance (not ‘reasonable steps’) or illness and marriage breakdown from audit etc (not ‘unreasonable to expect [him] to take part in the management’)

Tax Month - August 2017

The Supreme Court of NSW has entered judgment for a Deputy Commissioner for $1.9 million against a director of 2 companies for unpaid withholding tax and SGC. The defendant was the director of 2 companies. The companies had withheld amounts from salary, wages and other payments which were not remitted to the ATO. SGC assessments…

Academy Cleaning & Security Pty Ltd v DCT – Contract for the purchase of future property: ’emission units’ of ‘sequestered carbon’ – No deduction for unpaid 85% balance of purchase price after Australia’s emissions trading scheme did not proceed

Tax Month - August 2017

The Federal Court has dismissed a taxpayer’s appeal and held that its claimed deduction of $420,000 for the purchase of “sequestered carbon” was not deductible. The Court also held that the Commissioner’s Part IVA determination was “correct and inevitable on the evidence”. On 29 June 2009, the taxpayer, which provided security and cleaning services under contacts, entered…

USA signs CbC report exchange Arrangement with Australia – joining 18 others including Belgium, Brazil, Denmark, Guernsey, Ireland, Isle of Man, Netherlands, New Zealand, South Korea, South Africa

Tax Month - August 2017

The US and Australia signed a bilateral Competent Authority Arrangement on 1 August 2017 to exchange Country-by-Country (CbC) Reports. The arrangement is expected to apply for fiscal years beginning on or after 1 January 2016. As at 3 August 2017, the US has such arrangements with 19 countries including Belgium, Brazil, Denmark, Guernsey, Ireland, Isle of Man, Netherlands, New Zealand, South…

PCG 2017/13 – Div 7A: Unpaid Present Entitlement (UPE) sub-trust invested in 7 year interest only loan to main trust maturing in 2017 or 2018 fYears must be repaid or refinanced on a complying 7 year principal and interest loan

Tax Month July 2017

The ATO released Practical Compliance Guideline PCG 2017/13 on Wed 19.7.2017, provides guidance to trustees who, in accordance with Practice Statement PS LA 2010/4, validly adopted investment Option 1 before 1 July 2011 and placed funds representing an unpaid present entitlement (UPE) under a sub-trust arrangement on a 7-year interest only loan with the main trust. These arrangements will…

ATO advice on how the ‘Common Reporting Standard’ (CRS) affects ‘Not-for-Profit’ organisations

Tax Month July 2017

The ATO has released tailored advice to help those in the NFP sector understand if they have obligations under the Common Reporting Standard (CRS). The CRS is the single global standard for the collection, reporting and exchange of financial account information on foreign tax residents. The implementation of the CRS commenced in Australia on 1 July 2017.…