*Tax Practitioners Board v Dedic – Court makes penalty orders against unregistered tax agent [70]

The Federal Court has made a decision concerning the issue of appropriate penalty to be imposed on an individual for contraventions of s 50-5(1) of the Tax Agent Services Act 2009 [providing tax agent services if unregistered]. In an earlier judgment, the Court held the individual had contravened s 50-5(1) on 86 separate occasions between July 2010 and October 2012 by…

*Re Li and Tax Practitioners Board – Termination of tax agent’s registration confirmed for unwitting involvement in fraud [69]

The AAT has confirmed that a tax agent was not a fit and proper person to continue to be registered as a tax agent and that his registration should be terminated in view of his apparent unwitting involvement in fraud by third parties that had sought his services. This apparently involved fraudulent intermediaries holding themselves…

*Tax Practitioners Board v Kim (No 1) – Tax agent fails to have Board’s proceedings dismissed [66]

In a decision handed down on Fri 2.5.2014, the Federal Court has dismissed a tax agent’s appeal from AAT proceedings to dismiss earlier proceedings brought against him by the Tax Practitioners Board for making false or misleading statements in connection with the affairs of taxpayers, and for imposing civil penalties against him. In particular, the…

*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…