The AAT has held that the Commissioner had correctly imposed the nominal interest charge component in relation to amended assessments of superannuation guarantee charge issued to a taxpayer. In April 2013, the Commissioner notified the taxpayer that he proposed to undertake an audit of the taxpayer’s employer obligations. After the audit was completed, the Commissioner made amended…
The Federal Court has approved civil penalties for the trustees of a self-managed superannuation fund (SMSF) totaling $50,000 in relation to loan breaches of the SIS Act. The members of the SMSF were husband and wife directors of the corporate trustee of the fund. Over a 4-year period, the SMSF made 80 loans to the…
Treasury on Fri 10.10.2014, released for comment draft legislation which proposes to give effect to the 2014-15 Budget proposal to allow individuals the option of withdrawing super contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual’s marginal tax rate. According to…
The ATO on Wed 29.10.2014, issued Draft GST Determination GSTD 2014/D4 which states that the supply of brokerage services that facilitate the sale or purchase of financial products on overseas securities or futures exchanges is a GST-free supply under para (a) of item 4 in the table in s 38-190(1) of the GST Act (Item 4).…
The ATO on Wed 15.10.2014, issued an Addendum to GST Determination GSTD 2013/1 (When a payment for a supply fails, is a failed payment fee charged by the supplier consideration for a supply?). In addition, with effect from Wed 15.10.2014, the ATO withdrew GST Advice GSTA TPP 032 (Can a tax invoice show an amount…
The High Court has refused the taxpayers’ applications for special leave to appeal in the following cases: ATS Pacific Pty Ltd v FCT [2014] FCAFC 33. The Full Federal Court had unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator to overseas customers was fully subject to GST. [LTN…
The AAT has found that a taxpayer was not carrying on an enterprise for GST purposes, and affirmed the Commissioner’s decision to cancel the GST registration of the company, and deny input tax credits (ITCs) claimed for the relevant period. The taxpayer was a company set up by various members of the same family to…
This GST Ruling, released on Wed 1.10.2014 explains the Commissioner’s view on GST consequences of incentive payments made by motor vehicle manufacturers, importers and distributors to motor vehicle dealers. It provides practical guidance to the motor vehicle industry following the decision in AP Group Ltd v FCT [2013] FCAFC 105. Broadly, the Ruling outlines incentive…
With just under 2 months until Project DO IT closes on 19 December 2014, the ATO is reminding those with undisclosed offshore income and assets that they need to act now or risk compliance action and harsh penalties. Deputy Commissioner Michael Cranston says close to 1,500 taxpayers have already made the decision to clean up their tax…
There is a lot of discussion about what the tax profession will look like in the future and what this means for tax professionals. The ATO says that during recent conversations with tax professionals, they suggested sharing information to inform conversations with peers at discussion groups and with their practice staff. In response, the ATO…
