The IRS (USA) has reported that arrests have been made in relation to 2 investigations into money laundering using cryptocurrencies as part of operational activities by the “Joint Chiefs of Global Tax Enforcement”, known as the “J5” (Australia, UK, US, Canada and the Netherlands). See below for further details from media releases. [Tax Month –…
TPB review of CPE including a proposal to increase the hours required by over 30% – submissions due 18 March 2020
On 19 February 2020, the Tax Practitioners Board (TPB) issued a Discussion Paper seeking feed back, by 18 March 2020, on its proposals to change the ‘continuing professional education’ (CPE) tax agents and BAS agents (amongst others) including a proposal to increase the number of hours required, by over 30%. See below for further detail.…
Melbourne accountant pleads guilty to creating false invoices – issued to NewSat Limited (adjourned for sentencing)
On 14 February 2020, Mr Jason Dermot Cullen, pleaded guilty in the County Court of Victoria to two counts of authorising the making of a false or misleading document required by or for the purposes of the Corporations Act.
See below for the Media Release.
On 17 February 2020, the Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019 received Royal Assent as Act No 6 of 2020 (Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020). The Bill had been introduced into Parliament on 27.11.19 (see related TT article). See below for a summary of the amendments it makes. [Tax Month…
Burton v CofT – High Court has refused special leave, to the taxpayer, to appeal the decision giving him only a 50% ‘foreign tax credit’ on a capital gain taxed in the US
The High Court has refused the taxpayer’s application for special leave to appeal from the decision of the Full Federal Court decision in Burton v CofT  FCAFC 141.
See below for further details.
Vic Transfer Duty – Trusts with ‘foreign’ beneficiaries subject to an 8% uplift of market value – changes in the Victorian SRO’s treatment of discretionary trusts – ‘foreign beneficiaries’ now must be excluded in the deed (effective 1 March 2020)
Russell Kennedy Lawyers say that it is ‘Now is the time to review your discretionary trusts’. From 1 March 2020, you’ll need to have a clause, in your trust deed, excluding foreign beneficiaries.
See below for an explanation as to why.
GST anniversary: a time to celebrate – or consider a ‘Retail Sales Tax’, which is simpler and has greater integrity – as there are no refunds of input tax credits and no compliance & payments at every stage of supply chain
On 14 February 2020, the Tax Institute’s Senior Tax Counsel: Bob Deutsch, wrote his weekly Report in TaxVine (No5), titled: GST anniversary: a time to celebrate?
See below for the details.
Moltoni v CofT – Commissioner’s refusal to revoke DPO upheld – taxpayer bankrupted over $36m tax liability arising from him being personally assessed on a $21m payment from a company the infamous Mr Oswal controlled to a BVI company the taxpayer controlled
On 11 February 2020, the AAT upheld the Commissioner’s decision refusing to revoke a ‘Departure Prohibition Order’ (DPO) imposed because he was assessed to tax resulting in $36m in tax liabilities, related to Mr Oswal, who departed from Australia, with substantial funds shortly before an ammonia plant, he ran, collapsed in Western Australia. See below…
Payroll Tax (Vic) – Optical Superstore – High Court refuses leave to appeal the Commissioner’s win in Victorian Supreme Court Court of Appeal
The Victorian Supreme Court Court of Appeal had overturned the taxpayer’s win at first instance, and the High Court has refused the taxpayer’s application for special leave to appeal in Comr of State Revenue v The Optical Superstore Pty Ltd :  VSCA 197.
See below for further detail.
CofT v Travelex Limited – in a test case the FFC held that taxpayer was entitled to interest on the refund of overpaid GST – back to 2009 rather than 2012 under the detail in the RBA provisions
On 14 February 2020, the Full Federal Court (Kenny, Derrington and Steward JJ) dismissed the Commissioner’s appeal against a 2018 decision concerning the payment of interest on a RBA surplus that arose where the taxpayer had overstated its GST liability.
See below for a summary of the case.