NSW land tax: Chief Comr of State Revenue v Metricon Qld Pty Ltd – dominant purpose test, in primary production exemption, involves assessing competing physical uses (grazing cattle) not the ‘land-bank’ purpose of holding the land

In confirming that a land development company qualified for the primary production land tax exemption, the NSW Court of Appeal has ruled that any competing use of the land considered in applying the dominant use test must be a physical use of the land. The taxpayer is a property developer, which owns a number of…

Tax Month - February 2017

Anglo American Investments Pty Ltd v DCT – illegally obtained material from the Cayman Islands did not prevent collection of the tax; whether this was “conscious maladministration” was beyond the State Court’s jurisdiction

The NSW Court of Appeal has unanimously dismissed a taxpayer’s application for leave to appeal the decision in the Commissioner’s favour in his debt recovery case: DCT v Anglo American Investments Pty Ltd & Ors [2016] NSWSC 975 (note the other 5 applicants, in this first instance case, set out below). In those cases, the…

Tax Month - February 2017

‘SMSF Association’ and ATO announce strategic 3 year partnership to jointly to ensure effective regulation and integrity of the SMSF sector

The SMSF Association and Australian Tax Office (ATO) have announced a three-year strategic partnership, effective 15 February 2017. In a statement of intent released today, the Association and ATO outlined their intentions to work together to ensure effective regulation and integrity of the SMSF sector. The goals include improve and maintain the integrity and professionalism…

Tax Month - February 2017

Crimes Amendment (Penalty Unit) Bill 2017 introduced to increase the Commonwealth ‘penalty unit’ from $180 to $210 from 1 July 2017 and defer the first automatic 3 year CPI adjustiment to 1 July 2020

The Government introduced the Crimes Amendment (Penalty Unit) Bill 2017 into the House of Reps 16.2.2017 (see APH Bill Tracker). It proposes to amend the Crimes Act 1914 to increase the amount of the Commonwealth ‘penalty unit’ from $180 to $210, with effect from 1 July 2017. It would also delay the first automatic adjustment of the…

Tax Month - February 2017

Treasury Laws Amendment (Working Holiday Maker Employer Register) Bill 2017 – information kept by the ATO on employer registration will be kept confidential

The Government introduced the Treasury Laws Amendment (Working Holiday Maker Employer Register) Bill 2017 in the House of Reps on 16.2.2017. It proposes to give effect to the Government’s commitment that: the information collected by the Commissioner of Taxation concerning the employer registration information of employers of working holiday makers will not be able to…

Tax Month - February 2017

Treasury Laws Amendment (2017 Measures No 1) Bill 2017 introduced – changes 2016 ‘Innovation’ measures, so that investors through an interposed trust can access to CGT concessions; ASIC/ATO info sharing 

The Government introduced the Treasury Laws Amendment (2017 Measures No 1) Bill 2017 was introduced in to the House of Reps on Thursday16.2.2017. It proposes to: make minor technical changes to the ITAA 1997 to ensure the National Innovation and Science Agenda measures contained in Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operate in accordance…

Tax Month - January 2017

Diverted Profits Tax and other Multinational Tax Avoidance measures Bills were referred to a Senate committee for report by 20 March 2017

The Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 and the Diverted Profits Tax Bill 2017 have been referred to the Senate Economics Legislation Committee for inquiry and report by 20 March 2017. The Bills seek to implement a 40% Diverted Profits Tax (DPT) that would target multinationals that enter into arrangements to divert their Australian…

Tax Month - February 2017

Treasury Laws Amendment (GST Low Value Goods) Bill 2017 – will make the supply of ‘low value goods’ (to Australian consumers) taxable in Australia and make ‘electronic platform’ operators and ‘re-delivers’ liable for the tax also

The Government introduced the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 on 16 Feb 2017. It proposes to amend the A New Tax System (Goods and Services) Act 1999 (GST Act) to ensure that GST is payable on certain supplies of low value goods that are purchased by consumers and are imported into…

Tax Month - February 2017

Uber B.V. v FCT – UberX drivers must register for GST, irrespective of turnover, as they supply “taxi services” within the ordinary meaning of the relevant terms – despite all the distinctions put forward by Uber

On Friday 17.2.2017, the Federal Court has held that the uberX service, supplied by one of its drivers, constituted the supply of “taxi travel” within the meaning of s144-5(1) [see extract below] of the A New Business System (Goods and Services Tax) Act 1999 (GST Act). At the heart of this proceeding is the question…

Tax Month - February 2017