PCG 2019/D8 – ATO won’t audit deductions claimed for superannuation contributions, made at the end of the year, through the ‘Small Business Superannuation Clearing House’, if the fund finally gets the money the next year

On Thursday 21.11.19, the ATO issued PCG 2019/D8 – dealing with the timing of tax deductions, for super contributions, made through the Small Business Superannuation Clearing House, towards the end of the year.

See below for a summary of this draft Practical Compliance Guide.

[Tax Month – November 2019]

TD 2019/D12 – payments that would otherwise be deductible, in Australia, could be denied deductions, despite being taxed in the US under their ‘GILTI’ (low taxed income) rules

On Thursday 21 Nov 2019, the ATO issued TD 2019/D12 – which asks the question: ‘is section 951A of the US Internal Revenue Code a provision of a law of a foreign country, that corresponds to section 456 or 457 of the Income Tax Assessment Act 1936 (ITAA36) for the purpose of subsection 832-130(5) of the…

TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets – the Commissioner ventures the ‘brave’ view they are capital in nature (and not a ‘general deduction’)

On 21.11.19, the Commissioner released TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets, seeking comments on the draft by 14 February 2020. This is a stunningly important draft ruling as it seeks to turn wages into a capital expense, by looking beyond the advantage sought (to pay for inherently ephemeral labour) to…

Research and Development tax incentives leave Australia near the bottom of the pile for national R&D spend – one idea about what’s to be done

On 22 Nov 2019, the Tax Institute published and article, in their weekly TaxVine (45; 22.11.19) by their Senior Tax Counsel: Bob Deutsch CTA, entitled: Research and development – a new way forward. In his article, he survey’s the effectiveness of Australia’s existing incentives, compares their success, with other parts of the world and suggests a…

Frugtniet v Tax Practitioners Board – Termination of tax agent’s registration (for 5 years) upheld by the Full Federal Court

On 11 November 2019, the Full Federal Court dismissed an appeal by a tax agent, and confirmed the TPB’s decision, to terminate his registration, on the grounds he was not a “fit and proper person”. The decision also precludes the tax agent from applying for re-registration for 5 years. See below for a summary of…

Bluescope Steel (AIS) Pty Ltd v Australian Workers’ Union – DIS on the meaning of ‘ordinary times earnings’ and ‘ordinary hours of work’ for SGC purposes – whether the ‘additional hours component’ and the ‘public holidays component’ included

On 11 November 2019, the Commissioner issued his ‘Decision Impact Statement’ (DIS) on this case, which was about the meaning of ‘ordinary time earnings’ and ‘ordinary hours of work’ as used in the Superannuation Guarantee (Administration) Act 1992 (SGAA). See the related Tax Technical article about the SGC impact of the first instance decision. See below…

OECD Global Anti-Base Erosion (GloBE) Proposal under Pillar Two – a right to “tax back” – secretariat invites submissions by 2 Dec and a meeting on 9 Dec 2019

08/11/2019 – As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS, the OECD secretariat is seeking public comments on certain aspects of the Global Anti-Base Erosion (GloBE) Proposal under Pillar Two.

See below for the media release.

[Tax Month – November 2019]

ASIC guidance on companies’ whistleblower policies due by 1 Jan 2020 (RG 270) and relief to small not-for-profits and charities (sub-$1m revenue)

On Wednesday 13 November 2019, ASIC posted Media Release 19-308MR – ASIC gives guidance on companies’ whistleblower policies and relief to small not-for-profits – relating to the ‘whistleblower’ protections that have been effective from 1 July 2019, and the whistleblower policies that must be in place by 1 January 2020. See below for the Media Release. [Tax…