Tas: Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill 2016 receives Royal Assent – broadening the permitted use of ‘demonstrator’ vehicles under the exemption

The Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill 2016 (Tas) on 7 October 2016 received Royal Assent as Act No 34 of 2016. The Bill was introduced on 31 May 2016 and had passed all stages without amendment. The Bill amends the Duties Act 2001 (Tas) to broaden the permitted use of demonstrator vehicles under the duty…

Re ZDCW and FCT – Tax debt release refused because of non-essential assets, taxpayer mortgages given to his wife after first application and wife withdrawing her offer to contribute in the second application

A taxpayer has been unsuccessful before the AAT in seeking to be released from his tax debts under s 340-5 of Sch 1 to the TAA. The facts are summarized below and are set out in greater detail below in the extract from the Tribunal’s reasons. In 2006, the taxpayer was diagnosed with Parkinson’s disease and was…

Financial Synergy Holdings Pty Ltd v FCT – High Court refuses Commissioner leave to appeal – time for determining the market value of acquiring a pre-CGT asset remains its actual not deemed (pre-CGT) time

The High Court has refused the Commissioner special leave to appeal against the decision in Financial Synergy Holdings Pty Ltd v FCT [2016] FCAFC 31. The Full Federal Court had unanimously allowed the taxpayer’s appeal and held that for the purposes of determining the “allocable cost amount” (or cost base) of an asset that came…

Debt- Equity rules – draft legislation to implement the Board of Taxation’s recommendations to aggregate schemes when they are interdependent and designed to operate together (giving integrity rules more certainty)

On 10 October 2016, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP released Exposure Draft legislation and explanatory material to provide greater certainty in relation to integrity rules regarding the taxation of debt and equity. Australia’s tax rules classify financing arrangements as debt (with deductible interest) or equity according to their…

Re Edwards and FCT – Lump sum payment for arrears in workers’ compensation paid to a policeman assessable in year of receipt but eligible for smoothing tax offset

The AAT has confirmed that a lump sum payment made by Comcare to a former Australian Federal Police officer for arrears of workers’ compensation was assessable in its year of receipt, and not over the income years to which it related. In doing so the AAT confirmed that the “appropriate” accounting method for the taxpayer,…

DCT v Acimovic – Commissioner succeeds in application for rectification of consent order for debt owed of $612,103

A Deputy Commissioner has been successful, before the District Court of Queensland, in rectifying a consent order previously made by a registrar  in respect of a $600,000 debt owed by a taxpayer under s666 of the Uniform Civil Procedure Rules (Qld) (“the Rules”). The Court held that the consent order should never have been made…

PR 2016/8 – Investment in Luxembourg umbrella managed fund investing in Australian companies

The ATO on Wed 5.10.2016, released Product Ruling PR 2016/8 (Tax consequences of investing in Wellington Management Funds (Luxembourg)). It applies to Australian residents who are accepted to participate in the scheme on or after 1 July 2016 and on or before 30 June 2019. [LTN 192, 5/10/16] Extract from ruling Ruling Subject to paragraph 3 of this Product…

CR 2016/68-69 – ANZ Capital Notes 4; merger of Royal Automobile Club of Queensland Limited and QT Mutual Bank Limited

The ATO, on Wed 5.10.2016, issued the following Class Rulings: CR 2016/68: Australia and New Zealand Banking Group Limited – ANZ Capital Notes 4. It applies from 1 July 2016 to 30 June 2027. CR 2016/69: The scheme of arrangement – merger of Royal Automobile Club of Queensland Limited and QT Mutual Bank Limited. It applies from 1 July 2016 to…

Ward v FCT – no excess super contribution – a misleading super fund statement and adviser confusion were ‘special circumstances’ – Tribunal’s view too narrow, dicta out of context

The Full Federal Court has, on Wed 5.10.2016, allowed a taxpayer’s appeal after ruling that the AAT erred by taking too narrow a view of what may constitute “special circumstances” under s292-465 of the ITAA 1997. The taxpayer and his wife had panicked during the GFC and withdrawn their superannuation nest egg to the safety of term…

Qld stamp duty: ‘additional (3%) foreign acquirer duty’ applies to AFAD residential land from 1 October 2016

Australian Foreign Acquirer Duty Under Chapter 4 of the Duties Act 2001 (Qld), additional foreign acquirer duty (AFAD) is an extra 3% duty on top of the duty that applies to transactions that are liable for (1) transfer duty, (2) landholder duty or (3) corporate trustee duty. AFAD applies when all the following conditions are met:…