GST: definition of GST-free ‘adult and community education courses’ – new Legislative Instrument by the Minister to replace the 2000 Instrument

On Fri 30.9.2016, the Minister for Social Services registered a legislative instrument: A New Tax System (Goods and Services Tax) (Adult and Community Education Courses) Determination 2016 to satisfy the definition of “adult and community education course” in s195-1 of the GST Act. The significance of this instrument is that it determines what ‘adult and community education…

Re Landy and FCT – taxpayer held ‘resident’ for the year he worked in Oman – living in bachelors’ quarters supplied by employer whilst leaving family and home in Australia

A taxpayer has been unsuccessful before the AAT in arguing that he was not a tax resident of Australia for the 2008-09 income tax year. Between 4 January 2008 and September 2009, the taxpayer was employed and worked at a worksite at Mukhaizna in Oman [see extract of AAT’s reasons below]. The Commissioner considered the taxpayer to be a…

GST Legislative Instruments registered: AFS recipients of financial services may issue RCTI; Food retailers may use simplified method to calculate ITC’s; Makers of research grants can issue RCTI; Recyclers may issue RCTI; No adj note for s83-5 reverse charge; no ‘tax invoice’ for undercover agents

On Wed 28.9.2016, the Commissioner registered the following Legislative Instruments: GST: Recipient Created Tax Invoice Determination (No 41) 2016 for Australian Financial Services Licensees and their Representatives – It allows an Australian Financial Services (AFS) licensee or a representative of an AFS licensee that is a recipient of a taxable supply of a financial planning…

Review of Research and Development incentives released – 6 recommendations and three phases of implementation – things can be improved

On 28.9.16, the Federal Minister: Greg Hunt released the report from the The review was undertaken by Chair of Innovation Australia Bill Ferris, Australia’s Chief Scientist Alan Finkel and Secretary to the Treasury John Fraser, to: “Identify opportunities to improve the effectiveness and integrity of the R&D Tax Incentive, including by sharpening its focus on…

PCG 2016/5 – Safe harbours for related party LRBA’s for real property and listed shares to avoid audits of SMSF’s for NALI

On 28.9.16, the Commissioner issued Practical Compliance Guideline 2016/5 offering practical guidance as to the terms on which related party ‘limited recourse borrowing arrangements’ (LBRA’s) without attracting audits for ‘non-arm’s length income’ assessments under s295-550(1) of the Income Tax Assessment Act 1997 (ITAA97). It provides 2 ‘safe harbours’ – one for LBRA’s used to buy…

TD 2016/16 – A related party ‘LBRA’ will produce NALI when the asset could not have been funded on arm’s length terms

A superannuation fund generally cannot borrow, but s67A of the Superannuation Industry (Supervision) Act 1993 (SIS Act) permits superannuation funds to take ‘limited recourse borrowing arrangement’ (LRBA) to buy an ‘acquirable asset’ (and the asset is held by a separate trustee so the lender can only have recourse to that asset). Self Managed Superannuation Funds…

Re G J Brown & Co Pty Ltd and Tax Practitioners Board – Tax agent registration refused, as not “fit and proper person”

Two applicants (a company and its sole director) have been unsuccessful before the AAT in a matter concerning the Tax Practitioners Board’s decisions refusing essentially their tax agent registration. In October 2015, the Board rejected the application of the company applicant for renewal of its tax agent registration on the basis that the Board was not satisfied…

Switzerland ratifies the Convention on Mutual Administrative Assistance in Tax Matters: automatic exchange of foreign account info and CbC reports

Switzerland, represented by Ambassador Ulrich Lehner , today deposited its instrument of ratification for the multilateral Convention on Mutual Administrative Assistance in Tax Matters (“the Convention”) in the presence of OECD Secretary-General Angel Gurría. This ratification re-affirms Switzerland’s commitment to greater tax transparency and marks another important step in implementing the Standard for Automatic Exchange…

EU decision to make Apple refund 13b euro to Ireland was based on illegal state aid in the past, not BEPS transfer pricing rules in the future where profit should be in US: OECD BEPS chief, Saint Amans

The OECD chief of BEPS reform: Pascal Saint-Amans said that the EU decision to order Apple to pay back 13b euro to Ireland was not a precedent for the future as it was based on state aid rather than tax law in the past. European Union antitrust regulators last month ordered Apple to pay up…

Cross-border (B2B) changes started 1 October 2016 and Digital (eg. Netflix) (B2C) changes will commence on 1 July 2017

Cross-border business-to-business (B2B) GST reforms commenced on Saturday, 1 October 2016. They were introduced in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016, which received Royal Assent on 5 May 2016. Under the changes, the GST Act has been amended to better target the way Australia’s GST rules apply to cross-border supplies that involve non-resident…