Author Archives: John Morgan

Professional Administration Service Centres Pty Ltd v FCT – GST assessments: matter unjustly dismissed – ATO Decision Impact Statement [52]

The ATO Thur 7.2.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in Professional Administration Service Centres Pty Ltd v FCT [2012] FCAFC 180. In that decision, the Court unanimously allowed a taxpayer’s appeal from a Federal Court decision in which the Court summarily dismissed the taxpayer’s appeal against various GST assessments.…

ATO ID 2013/9: GST – representative of an incapacitated entity that is neither registered nor required to be registered, cannot be registered itself [53]

The ATO on Fri 15.2.2013, issued ATO ID 2013/9 (GST and registration of a representative of an incapacitated entity when the incapacitated entity is neither registered nor required to be registered). It says the representative of an incapacitated entity cannot register, under s 23-10 of the GST Act, in its capacity as the representative of the…

Committee recommends amendments to Superannuation Bill with last tranche of the ‘MySuper’ changes [54]

The report of the Parliamentary Joint Committee on Corporations and Financial Services on the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 has been tabled in Parliament. The Committee made 9 recommendations, including amendments concerning notices in writing about complaints re TPD claims, non-death benefit complaints, penalties for certain offences, APRA guidance re…

CR 2013/11 – Conversion of shares leads to CGT event H2, but no capital gain [34]

The ATO on Wed 13.2.2013, released Class Ruling CR 2013/11 (Conversion of shares – WorkPac Pty Ltd). It applies from 1 July 2012 to 30 June 2013. Broadly, the Ruling states that the variation of rights attaching to various class shares on the conversion to ordinary shares will cause CGT event H2 to occur, however, shareholders will not make…

CR 2013/12-14 – Capital proceeds; GST and developer contributions; GST and dentists [35]

The ATO Wed 20.2.2012 released the following Class Rulings: CR 2013/12: CGT: special dividend and capital proceeds from the sale of Norton Gold Fields Limited shares pursuant to off market takeover. It applies from 1 July 2012 to 30 June 2013. Among other things, the Ruling states that CGT event A1 happened when shareholders disposed of their shares and…

CR 2013/15-16 – Equity incentive plan; disability funding program SA [36]

The ATO on Wed 27.2.2013, released the following Class Rulings: CR 2013/15: Leighton Holdings Limited Equity Incentive Plan. It applies from 1 January 2012. Broadly, the Ruling states that the rights acquired under the incentive plan are indeterminate rights for the purposes of s 83A-340 of the ITAA 1997 and will be treated as rights to acquire a…

*PS LA 2011/5 amended – Recovery of administrative overpayments [37]

The ATO on Thur 7.2.2013, amended Practice Statement PS LA 2011/5, which deals with the recovery by the ATO of administrative overpayments, and outlines the circumstances and risk factors that will determine how and when the ATO will take action to recover administrative overpayments. The amendments add new paragraphs concerning for example reinforcing tax officers’…

AUSTRAC information to the ATO: guidelines released for disseminating bulk information [38]

AUSTRAC has released guidelines governing its release of bulk information to the ATO and designated agencies. This guidance is to assist the AUSTRAC Chief Executive Officer in considering requests for the disclosure of bulk AUSTRAC information from: the Commissioner of Taxation or any taxation officer (ATO official); or an appropriately authorised official of a designated…

*Electronic Funds Transfer for refunds from 1 July 2013 for individuals [39]

The ATO has advised tax agents that from 1 July 2013, individual returns will require bank details to be entered when lodging through ELS, where a refund is expected. It says this will enable electronic funds transfer (EFT) to be used, which is the fastest and most secure way to receive tax refunds. The ATO says details…

*Real-time compliance approach for higher consequence taxpayers [40]

The ATO has released its Real-time compliance engagement approach for higher consequence taxpayers in the large market. It says the information outlines the policy behind its approach to higher consequence taxpayers. According to the ATO, it uses pre-lodgment compliance reviews (PCRs) for all higher consequence taxpayers that do not have an annual compliance arrangement. It…