Post-implementation reviews OK: Non-commercial losses; FBT and car fringe benefits; ESS [71]

The Federal Office of Best Practice regulation on Wed 15.1.2014, released its findings into post-implementation reviews conducted by Treasury into: The non-commercial loss provisions introduced following the 2009-10 Budget announcement. FBT: changes to the statutory formula method for determining the taxable value of car fringe benefits ie applying a single 20% rate. Better targeting concessions…

FoFA amendments – draft regulations and legislation released [70]

The Assistant Treasurer on Wed 29.1.2014, released for public consultation draft regulations and legislation (and accompany explanatory materials) to enact the Government’s announced reforms to the Future of Financial Advice (FoFA) regime. Senator Sinodinos said although the Government was supportive of the FoFA principles, the previous Government’s reforms were “unwieldy, burdensome and unnecessarily complex”. He…

ACT stamp duty: progressive abolition of duty on general insurance policies – adjustments to help facilitate this [66]

The ACT Revenue Office has issued Revenue Circular DAA013 (General insurance duty adjustments). As part of the ACT’s taxation reform measures, the amount of duty charged on general insurance is being abolished progressively over 5 years. Duty will be reduced by 20% each year until 1 July 2016, when the duty rate for insurance premiums will reduce…

*NSW payroll tax: Smith’s Snackfood Company Ltd v Chief Comr of State Revenue – taxpayer wins appeal: contractors not engaged under a ‘relevant contract’ [64]

The NSW Court of Appeal has unanimously allowed a taxpayer’s appeal against an earlier decision, which had ordered that the Commissioner reassess the taxpayer for payroll tax in accordance with its reasons. The taxpayer sold snack foods and drinks through vending machines and engaged independent contractors to store, transport and restock the vending machines. The…

ACT landholder duty: Francey v Comr for ACT Revenue – constructive trust, so no liability on transfer of shares [63]

The ACT Civil and Administrative Tribunal has found that a taxpayer (an individual) was not liable to pay duty on the acquisition of an interest in a landholding entity in the ACT. On 14 December 2007, the taxpayer entered into a Purchase Option Agreement with her brother-in-law for the right to purchase the shares in his company…

*ACT stamp duty: Comr of ACT Revenue v Araghi & Anor – Commissioner loses appeal regarding ‘interdependent house and land contracts’ [62]

The Commissioner for ACT Revenue has been unsuccessful before the ACT Court of Appeal in appealing a matter concerning the dutiable value of what he argued to be “house and land packages” or “off the plan” purchase arrangements under the Duties Act 1999 (ACT). The matter concerned the Commissioner’s assessment of stamp duty on so-called…