Last year, the Tax Laws Amendment (2012 Measures No 2) Act 2012 modified the consolidation rights to future income (RTFI) and residual tax cost setting (RTCS) rules. The changes were intended to ensure that the tax outcomes for consolidated groups are more consistent with the tax outcomes that arise when assets are acquired outside the…
The ATO has released details of its administrative treatment regarding the Government’s proposed amendments to Pt IVA of the ITAA 1936, contained in the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 which is still before Parliament. The amendments are proposed to apply retrospectively to schemes entered into or carried out…
The ATO has released details of its administrative treatment regarding the Government’s proposed change to allow companies to carry-back tax losses to receive a refund against taxes previously paid subject to certain conditions. The one-year loss carry-back was originally proposed to apply from 2012-13, where tax losses incurred in that year can be carried back…
The ATO has advised tax agents that the Australian Business Register (ABR) is reviewing and cancelling Australian Business Numbers (ABNs) where records indicate that holders are not conducting an enterprise, and therefore, not entitled to hold an ABN. It says those taxpayers who have had their ABN cancelled will receive a letter providing the reason…
The ATO on Wed 17.4.2013, announced a data-matching program targeting visa holders. It will request and collect the names, addresses and other details of visa holders of various visa subclasses between the period 1 January 2012 to 30 June 2014 from the Department of Immigration and Citizenship. The ATO said details of approximately 1m individuals will be matched to…
The ATO has advised that in late April 2013, it will be sending letters to directors of companies that have unpaid PAYG withholding amounts. It says the letter will explain the directors’ obligations and personal risk in relation to their companies’ PAYG withholding debt, and will encourage directors to pay the debt immediately or make a payment…
The ATO on Wed 3.4.2013, announced a data-matching program targeting online sellers. It will collect the personal information as well as the number and value of monthly sales, internet protocol addresses, and bank account details of sellers who have made sales of $20,000 or greater in the 2010-11 income year through various online selling websites.…
The AAT has confirmed that a taxpayer, a company that made a capital gain of over id=”mce_marker”m in selling its interest in a car wash business in the 2007-08 income year, did not satisfy the (then) $5m maximum net asset value (MNAV) test for the purpose of qualifying for the CGT small business concessions. In…
The AAT has held that amounts transferred by the taxpayer using a pseudonym to a trust established in Vanuatu was assessable income. In addition, it also held that furniture removal expenses the taxpayer incurred were not deductible, and affirmed the shortfall penalty imposed of 75% for intentional disregard. The taxpayer established a trust in Vanuatu…
The AAT has held that, for the purposes of undertaking its review of the Commissioner’s deemed disallowance of the taxpayer’s objection against the Commissioner’s failure to make a private ruling concerning its claim for a deduction under s 716-405 of the ITAA 1997 re rights to future income, it was not open to the Tribunal to…