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

*Monthly PAYG installments for large corporate tax entities to commence from 1 January 2014 – ATO action [57]

Amendments contained in the Tax Laws Amendment (2013 Measures No 2) Act 2013 require that, from 1 January 2014, corporate tax entities (including companies, corporate limited partnerships, corporate unit trusts or public trading trusts defined in s 960-115 of the ITAA 1997) who have base assessment installment income over a $1bn threshold will need to start paying monthly…

TD 2013/16 – Reasonable travel and meal allowance amounts for 2013-14 [50]

This Determination, released on Wed 3.7.2013, sets out the amounts the Commissioner considers are reasonable for the 2013-14 income year in relation to claims made for: overtime meal allowance expenses – the amount is $27.70; domestic travel allowance expenses. The reasonable amounts are given for: (i) accommodation at daily rates (for domestic travel only); (ii)…

CR 2013/48-50 – Exchange of shares; capital reallocation; early retirement [52]

The ATO on Wed 3.7.2013, released the following Class Rulings: CR 2013/48: Exchange of shares in Bathurst Resources Limited for shares in NZ NewCo. It applies from 1 July 2012 to 30 June 2014. Broadly, the Ruling states that participating shareholders will be eligible to choose roll-over relief in relation to the exchange of shares to disregard any capital…

*FCT v Bargwanna & Anor as Trustees of the Kalos Metron Charitable Trust – trust lost its exemption as fund not applied for purposes it was established [46]

The ATO on Thur 11.7.2013, released a Decision Impact Statement on the High Court’s decision in FCT v Bargwanna & Anor as Trustees of the Kalos Metron Charitable Trust (2012) 82 ATR 273. In that case, the High Court unanimously allowed the Commissioner’s appeal and held that the taxpayer trustees’ administration of the Kalos Metron…

CR 2013/56-60 – Transfer payments; return of capital; scrip-for-scrip; sport support scheme; performance rights [55]

The ATO on Wed 31.7.2013, released the following Class Rulings: CR 2013/56: Treatment of transfer payments to employees of NSW Roads & Maritime Services following the outsourcing of road maintenance operations to a private operator. It applies from Wed 31.7.2013 to 30 June 2015. Broadly, the Ruling states that the proposed transfer payment is in consequence of…

*Symond v Gadens Lawyers Sydney Pty Ltd – solicitors gave negligent advice re withdrawing funds from company for tax purposes [45]

The NSW Supreme Court has held that solicitors who advised Mr John Symond, founder of “Aussie Home Loans”, were negligent in the advice they gave him in relation to a revised ownership structure to allow him access to funds in a tax advantageous manner for the construction of his new home but which, instead, resulted in a significant…