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

Re Trantino and FCT – Excess non-concessional super contributions tax assessments upheld – as two contributions by ‘associates’ had to be aggregated [71]

In a decision handed down on Thur 28.3.2013, the AAT has held that excess non-concessional contributions tax assessments issued to a taxpayer should stand. The taxpayer was a member of the Trantino Superannuation Fund. On 26 August 2009, the Fund lodged an amended Member Contributions Statement, stating that in the financial year ended 30 June 2007, the taxpayer had…

*2013 Independence guide for accountants and auditors – can’t audit your own accounts, your own fund, and must have 7 year rotation of auditors [73]

The latest version of the Independence guide (Fourth edition, February 2013) for accountants and auditors has been released by the Joint Accounting Bodies. It is available via the websites of CPA Australia, The Institute of Chartered Accountants Australia and The Institute of Public Accountants. The Guide seeks to assist professional accountants in complying with the auditor independence requirements…

*ATO to write to employers re superannuation changes – including SGC increase to 9.25% and removal of upper age limit of 70 from 1 July 2013 [74]

The ATO has advised that in April 2013, it will be sending information directly to employer clients of tax agents with super guarantee obligations to remind them of a range of super reforms being implemented from 2013 to 2019. According to the ATO, this includes the increase in super guarantee payments (from 9% to 9.25% from 1 July 2013)…

*ASIC takes further action against 2 companies making unauthorized offers to 200 SMSFs of shares in US distressed property and a BVI company [75]

ASIC announced on Tue 19.3.2013, that it has obtained further court orders as part of its ongoing investigation into 2 Queensland-based self-managed superannuation fund (SMSF) advice companies. ASIC has alleged that Royale Capital Pty Ltd (Royale) (now known as ACN 143 832 053) and ActiveSuper Pty Ltd (ACN 125 423 574) (ActiveSuper) raised $4.75m from…

ASIC consults on reforms to super fund retirement estimates [76]

ASIC has released a consultation paper proposing reforms to assist superannuation fund trustees in providing retirement estimates. Consultation Paper 203 Age pension estimates in superannuation forecasts: Updates to RG 229 (CP 203) proposes updates of ASIC’s original guidance issued in December 2011. CP 203 proposes reforms which: allow super funds to include the Age Pension as part…

ATO reminder to APRA regulated funds about SuperStream rules – validation by 2 April and transition to electronic rollover 1 July to 31 December 2013 [77]

In its SuperUpdate March 2013, the Tax Office has reminded APRA regulated superannuation funds that they must start complying with the new SuperStream data and e-commerce Standard for rollovers from 1 July 2013. To help funds get ready for processing rollovers in the Standard, there is a transition-in period from 1 July to 31 December 2013. The Tax Office says each APRA-regulated fund…

Commissioner appeals AAT case of Re Dowling and FCT – regarding an order to disregard a non-concessional superannuation contribution [70]

The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 49, Re Dowling and FCT. The AAT had set aside the Commissioner’s decision and ordered that a non-concessional super contribution for the 2009 year, and the related penalty that was assessed, be disregarded and not…

*DCT v Bayconnection case – no adjournment of winding-up, despite Pt IVC appeal being on foot – priority to collecting revenue and poor prospects [57]

The Federal Court has refused an application by 4 related companies for the adjournment of winding-up applications brought by the Commissioner. The matter related to an earlier finding of the AAT in AAT Case [2013] AATA 40, Re Bayconnection Property Developments Pty Ltd and Ors and FCT that the companies were not carrying on an…

*The Private Tutor and FCT – GST: tutor carrying on an enterprise, but input tax credits claims denied – no GST in acquisition price or private in nature [58]

The AAT has held that a taxpayer was carrying on an enterprise during the relevant period and therefore set aside the Commissioner’s decision cancelling his GST registration. However, the AAT denied the taxpayer’s input tax credit claims, and therefore affirmed the Commissioner’s assessments of the taxpayer’s net amounts for the relevant period. The Tribunal said…

Edwards v R – Jail sentence for falsely claiming GST refunds upheld (4 years and 3 months with a non-parole period of 2 years and 2 months) [59]

The NSW Court of Criminal Appeal has dismissed a taxpayer’s appeal against the severity of the sentence handed down by the NSW District Court concerning his lodgment of false BASs claiming GST refunds of just over $500,000. The District Court (Flannery DCJ) found that between 9 July 2004 and 4 January 2006, the taxpayer lodged 27 BASs on behalf…