CofT v Addy – “Backpacker tax” applies to British national who was an Australian tax resident on a ‘working visa’

On 6.8.20, the Full Federal Court has allowed the ATO’s appeal against a decision that the so-called “backpacker tax” did not apply to a British national who was a tax resident of Australia because of a non-discrimination clause in the Australia-UK DTA. See below for further details. [Tax Month – August 2020]     The…

Age retirement rule is probably illegal – implications for professional service firms in light of action of Deloitte partner forced to retire at age 62

On Friday 7.8.20 the Australian Financial Review’s reporters Hanna Wootton and Edmund Tadros posted an article entitled Age retirement partners rule is illegal: experts. It assesses the future of age based requirements for partners in professional forms to retire at certain ages, in wake of the recent claim by a former Deloitte partner, forced to retire…

GE settled ATO audit for $273m in UK ‘tax fraud’ case – ‘triple dipped’ interest (UK and Aus work together)

On Friday 7.8.20, the Australian Financial Review posted an article by its Senior Writer: neil Chenoweth, entitled GE settled ATO audit for $273m in UK ‘tax fraud’ case. It involves a 4 day $4.9b loan with interest ‘triple-dipped’ in  the US, UK and Australia before declaring tax free profits in Luxembourg. See below for details. [Tax…

Kander v CofT – employee failed to tick the right box for ‘salary sacrificed’ super contributions and was assessed on the salary she directed be paid as contributions

In Kandor v CofT, the AAT decided that Super contributions, which a taxpayer mistakenly directed her employer to make, from after-tax salary, rather than from pre-tax salary, were assessable to her and that the AAT did not have the power to correct her mistake. This was a 31 July 2020 decision reported on 5 August 2020.…

More on the Victorian Stage 4 lockdown – the Tax Institute advises on impact for tax practitioners and taxpayers and policy lobbying

Robyn Jacobson CTA, Senior Advocate for The Tax Institute wrote a broadcast email to Institute Members saying: “The nation is reeling from the current situation in Victoria. As Senior Advocate at The Tax Institute, I am reaching out to assure you that our tax community remains connected and strong, and to keep you informed on the targeted…

Plutus Payroll (Australia’s biggest tax fraud) – founder: Simon Anquetil jailed for 7 years 6 months (5 years non-parol) – under joint ‘Operation Elbrus’

On 31 July 2020, the Australian Federal Police, Australian Tax Office and Commonwealth Director of Public Prosecutions issued a joint media release, saying that the founder of the ‘Plutus’ tax fraud: Simon Anquetil, was sentenced in the Supreme Court of NSW – to 7 years and 6 months in jail, with a non-parole period of 5…

Victorian ‘Stage 4 lockdown’ restrictions – impact on lawyers – Victorian Legal Services Board + Commissioner update

On Wednesday 5 August 2020, the Victorian Legal Services Board + Commissioner issued a broadcast email to all Victorian lawyers, giving a summary of the effect of both the new ‘Stage 4’ and previous ‘Stage 3′ lockdown restrictions on lawyers in this state – now the dust has settled (and the restrictions bite – at…

Victorian ‘stage 4’ limitations on Melbourne businesses – announced by Premier on 3 August 2020 (some effect on legal, accounting and tax services)

On Sunday 2 August 2020, Victoria stepped up its COVID-19 restrictions – the Greater Melbourne area to ‘Stage 4’. This includes stricter ‘stay at home’ restrictions – 8pm-5am curfew, 5km limit, only 1 hour exercise, only 1 person per household leaving to shop for much reduced essential goods and services. But an important facet of…

Tax haven residents hold $5.7 billion of cash in Australia – Marshal Islands residents $5m average – next biggest $1m in BVI

On 3 August 2020, the Australian Financial Review posted an article written by its National Affairs Correspondent: Angus Grigg entitled: Tax haven residents hold $5.7 billion of cash in Australia. This information is a result of the ATO publishing non-secret aggregate data from recent information sharing reforms, between Revenue Authorities, which came out of the ‘base…

Tax Month – August 2020

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – August 2020 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner.   Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ COMPILING…