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

*Trans-Tasman superannuation portability – (limits on New Zealand sourced amounts) [83]

Tax Month - May 2013

Draft regulations released The Government has released Exposure Draft – SIS Regulations to support the implementation of its trans-Tasman retirement savings portability scheme. From 1 July 2013, it will be possible to transfer retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes under a portability scheme established by the Superannuation Legislation Amendment (New Zealand…

*Higher super concessional contributions caps for older individuals – draft legislation released for consultation [79]

Tax Month - May 2013

The Government on Mon 6.5.2013, released for public consultation an exposure draft of the legislation to implement a higher concessional superannuation contributions cap of $35,000 for older individuals as announced by the Government on 5 April 2013. For individuals aged 60 and over, the new proposed higher cap will apply from 1 July 2013. Individuals aged 50 and over…

Re Wynnum Holdings No 1 Pty Ltd & Ors v FCT – taxpayers withdrew appeal – input tax credits remain disallowed; no enterprise and not ‘commercial residential premises [73]

Tax Month - May 2013

The taxpayers have discontinued their appeal to the Federal Court against the decision of Frost DP in AAT Case [2012] AATA 616, Re Wynnum Holdings No 1 Pty Ltd & Ors and FCT. The AAT decision, which now stands, had held the nominee and bare trustee of a joint venture trust was not carrying on…

Personal Services Income (PSI) – ATO will write to certain taxpayers and tax agents encouraging voluntary disclosures where appropriate [65]

Tax Month - May 2013

The ATO has advised that in May 2013 it will be writing to some taxpayers asking them to review their income tax returns for the 2011-12 year. It says those taxpayers will be asked to review whether the business income they have reported in their tax returns may be in full or part, be classified as personal services income…

*ATO targets complex offshore structures with substantial data it is sharing with other revenue authorities [64]

Tax Month - May 2013

The ATO on Fri 10.5.2013, advised that along with Tax Commissioners from the US and UK, it has obtained substantial data which reveals the extensive use of complex offshore structures to conceal assets by wealthy individuals and companies. It says preliminary analysis of the data indicates that the offshore structures are located in a number…

Yacoub v FCT – Taxpayers withdraw their appeal against decision that GST was payable on properties sold [72]

Tax Month - May 2013

The taxpayers have discontinued their appeal to the Full Federal Court against the decision of Jagot J in Yacoub v FCT (2012) 83 ATR 722 / [2012] AATA 401. The Federal Court’s decision, which now stands, had dismissed appeals by the taxpayers concerning the Commissioner’s decision to disallow an objection to a notice of assessment for the…

*ATO reminder about Trustee resolutions – by 30 June or earlier if required by Deed, and in writing if required by Deed or to ‘stream’ [68]

Tax Month - May 2013

The ATO has reminded trustees who make beneficiaries entitled to trust income by way of a resolution that they must do so by the end of the year (ie 30 June). It said the resolution will determine who is to be assessed on the trust’s taxable income. The ATO said trustees should consult the relevant trust…