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

*PS LA 2014/2 – Administration of transfer pricing penalties [42]

Tax Month - December 2014

This Practice Statement, released on Wed 17.12.2014, considers the administration of transfer pricing penalties for income years commencing on or after 29 June 2013. It explains: (i)      when an entity will be liable for a transfer pricing penalty; (ii)     how the entity’s transfer pricing penalty is assessed, and (iii)    how the Commissioner’s discretion in…

*PS LA 2011/27 (on ‘U turns’) updated after Macquarie Bank decision – dealing with when the ATO should only apply its view of the law prospectively [41]

Tax Month - December 2014

The ATO on Thur 4.12.2014, updated Practice Statement PS LA 2011/27 (Matters the Commissioner considers when determining whether the ATO view of the law should only be applied prospectively). The ATO had previously issued proposed amendments to the Practice Statement following the Full Federal Court’s decision in Macquarie Bank Limited v FCT [2013] FCAFC 119.…

ATOIDs: above-average special professional income; employers admin of ESS; Consolidation – Right to Future Income; Commission paid to executor [40]

Tax Month - December 2014

The ATO on Fri 19.12.2014, issued the following IDs: ATO ID 2014/41: Application of above-average special professional income provisions to individuals who earn income from uploading videos on YouTube; ATO ID 2014/42: Income: employer costs for the purpose of administering its employee share scheme are deductible; ATO ID 2014/43: Consolidation: Right to Future Income: whether…

ATOIDs – Capital Allowances, undeducted construction expenditure, related party non-commercial limited recourse borrowing [39]

Tax Month - December 2014

The ATO on Fri 12.12.2014 released the following IDs: ATO ID 2014/37: Capital Allowances: capital works – construction expenditure – costs to build temporary roads and restoration costs; ATO ID 2014/38: Capital Works: undeducted construction expenditure – period where no capital works deduction is available; ATO ID 2014/39: Income Tax: non-arm’s length income – related…

Class Rulings: capital reallocation, demerger, early retirement scheme, rollover [37]

Tax Month - December 2014

The ATO on Wed 10.12.2014, issued the following Class Rulings: CR 2014/98: Ardent Leisure Group (ALG) Capital Reallocation; CR 2014/99: Demerger of Jacana Minerals Limited by Syrah Resources Limited; CR 2014/100: The University of Western Australia 2014-15 Voluntary Early Retirement Scheme; and CR 2014/101: Unit for unit roll over: exchange of retail units in LHP Diversified…

TD 2014/22-24 – Consolidation, rights to future income and residual tax cost setting rules [34]

Tax Month - December 2014

The ATO on 17.12.2014, released Taxation Determinations TD 2014/22, TD 2014/23 & TR 2014/24 on the consolidation changes introduced by Pt 4 Sch 3 of the Tax Laws Amendment (2012 Measures No 2) Act 2012 (rights to future income (RTFI) and residual tax cost setting rules), which are relevant in ascertaining whether the pre-rules, interim rules, or prospective rules…

*TD 2014/25-28 & GSTR 2014/3 – Bitcoin – income tax; CGT, trading stock, foreign currency; GST and FBT treatment [33]

Tax Month - December 2014

The ATO on Wed 17.12.2014, issued the following Taxation Determinations: TD 2014/25 – It states that Bitcoin is not a “foreign currency” for the purposes of Div 775 of the ITAA 1997. TD 2014/26 – It says that Bitcoin is a “CGT asset” for the purposes of s 108-5(1) of the ITAA 1997. TD 2014/27 – It indicates that when held for the purpose…