*IGoT reviews of (1) ATO debt collection systems and (2) tax practitioner services – terms of reference released [65]

The Inspector-General of Taxation (IGT), Ali Noroozi, on Mon 26.5.2014, announced the terms of reference for 2 reviews. Details are as follows: ATO approach to debt collection – “Despite the ATO’s debt assistance programs, its approach to collecting taxes has been a persistent source of taxpayer complaint,” Mr Noroozi said. Furthermore, Mr Noroozi said some…

SuperStream start dates: ATO/APRA reminders for super trustees [64]

The Tax Office and APRA Wed 28.5.2014, sent a letter to registrable superannuation entity (RSE) licensees explaining trustees’ responsibilities on certain SuperStream related measures. Issues covered include the commencement dates; the 3-day processing requirement for contributions; the use of the Fund Validation Service; the mandatory use of SuperTICK to validate member details; and breach reporting.…

*Re Thompson and FCT – Superannuation re-contribution hit with $60,959 in excess contributions tax [63]

The AAT has upheld a superannuation excess contributions tax assessment after finding that there were no “special circumstances” under s 292-465 of the ITAA 1997 to enable the Commissioner to disregard the excess non-concessional contributions. The taxpayer had made a personal superannuation contribution of $400,000 in the 2008-09 year. In doing so, she triggered her $450,000…

*Re Mourched and FCT – Person disqualified under SIS Act remained disqualified – no ‘exceptional circumstances’ [62]

The AAT has upheld the Commissioner’s decision to disallow an application for waiver of the applicant’s disqualified status under the SIS Act. The applicant claimed there were exceptional circumstances that supported his case, but the Tribunal disagreed. The case turned on its facts but illustrates the high standard required to meet the “exceptional circumstances” test.…

*Div 293 contributions tax (for those earning over $300k) for defined benefit funds & Unclaimed super – New regulations were registered [61]

The Tax and Superannuation Laws Amendment (2014 Measures No 2) Regulation 2014 was registered on Fri 16.5.2014. It makes the following amendments to the Income Tax Assessment Regulations 1997 and the Superannuation (Unclaimed Money and Lost Members) Regulations 1999: Method for calculating the amount of defined benefit contributions – Division 293 tax applies to high…

*SuperStream data standards: contribution transition-in period extended by 12 months to 30 June 2017 [60]

Following the Government’s announcement to defer aspects of the implementation of the SuperStream contribution data standards to 1 July 2015 (see above), on 27.5.14 the Tax Office registered the Superannuation Data and Payment Standards (Contribution Transitional Arrangements) Amendment 2014. The Standard amends the contribution transitional arrangements contained in Sch 1 to the Superannuation Data and Payment Standards 2012…

*SuperStream: Govt to extend deadline for super funds receiving contributions under the new standards to 1 July 2015 [59]

The Government announced on Mon 26.5.2014, that it will provide more flexibility for superannuation funds in receiving contributions as it continues to make the necessary changes to implement the SuperStream contributions data standards. The Acting Assistant Treasurer, Senator Mathias Cormann, said that superannuation funds will have up to 1 July 2015 to meet the new standards. Senator…

*Super choice product dashboard start date deferred to 1 July 2015 [58]

Acting Assistant Treasurer Senator Mathias Cormann on Mon 5.5.2014, announced that the Government has decided to defer the start date for the choice product dashboard and the introduction of a portfolio holdings disclosure regime to 1 July 2015. The choice product dashboard is intended to enable greater comparability of superannuation products, while the introduction of a portfolio…

*ATS Pacific Pty Ltd v FCT – GST on ‘arranging’ supplies to non-resident travel agents – incidental to tourism supplies consumed in Australia [57]

The ATO on Fri 2.5.2014, released a new Interim Decision Impact Statement on the Full Federal Court decision in ATS Pacific Pty Ltd v FCT [2014] FCAFC 33. In that case, the Full Federal Court unanimously upheld the Commissioner’s argument that a supply made by an Australian inbound tour operator to overseas customers was fully…

*Re Davsa Forty-Ninth Pty Ltd as Trustee for the Krongold Ford Business Unit Trust and FCT – ITC claims mostly denied [56]

A taxpayer has been mostly unsuccessful before the AAT in claiming input tax credits (ITCs) for vehicles purchased in a car sales business. The AAT also affirmed the 25% penalty imposed by the Commissioner for failing to take reasonable care. The taxpayer carried on activities as a one-man business of selling motor vehicles. From 2004…