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

*AUSTRAC releases Circular on ATO Project DO IT (Do it before 19.12.14) [58]

AUSTRAC has released its Information Circular No 86 on the ATO’s Project DO IT offshore voluntary disclosure initiative. The Circular says the initiative allows taxpayers to voluntarily disclose previously unreported foreign income and assets before 19 December 2014. It said the ATO is urging taxpayers with offshore assets to declare their interests ahead of a global crackdown…

*External compliance assurance process: ATO releases more details [57]

The ATO has released further details of its external compliance assurance process (ECAP) for taxpayers in the large market, including guideline materials for assurance practitioners when conducting agreed-upon procedures engagements under the ATO’s ECAP pilot program. The ATO said the intent of the pilot program is to test the effectiveness and viability of taxpayers using existing…

*Tax Office website updates – including administrative treatment for abolition of $6,500 write-off which has not yet been repealed [56]

From the ATO website: Instant asset write-off and simplified depreciation – Administrative treatment – The ATO has noted the Government’s intention to repeal the provision allowing small businesses an accelerated initial deduction for motor vehicles. The ATO says taxpayers, including those who use early balancing substituted accounting periods, who lodge a tax return for the…

Audit improvements from outside the ATO will be adopted more widely in the ATO: Commissioner’s speech [54]

The Commissioner on Thur 12.6.2014, addressed the Institute of Chartered Accountants Australia (ICAA) Practice Forum. Mr Jordan said the ATO has received feedback from tax and audit professionals who were recently recruited from outside the ATO. The staff provided feedback on how the ATO could improve the way it manages audits. Their suggestions included better project…

ATO ready to trial external compliance assurance process: ATO Commissioner [53]

The Commissioner on Tue 3.6.2014, spoke at the Corporate Tax Association annual convention. Mr Jordan said the ATO has been consulting on External Compliance Assurance (sometimes referred to as external compliance assurance process or ECAP). ECAP aims to leverage already rigorous external audit and assurance processes for public companies and give some taxpayers with turnovers of…

Draft Practice Statement PS LA 3624 released on Administrative Penalties under s284-75(3) of the TAA1 [51]

The ATO on Thur 26.6.2014, issued Draft Practice Statement Law Administration PS LA 3624 (Administration of the penalty imposed under s 284-75(3) of Sch 1 to the TAA). A taxpayer is liable to an administrative penalty under s 284-75(3) where: they fail to lodge a return, notice or other document by the due date for lodgment; and the…