Re H J International Trade Group Pty Ltd and FCT – milk bar and student home stay taxpayers assessed on under-reported income tax and GST based on records and industry averages together with penalties

The AAT has affirmed the Commissioner’s income tax and associated penalty decisions imposed on a taxpayer. However, it also decided to vary the GST and associated penalty decisions to reflect a reduced GST liability as conceded by the Commissioner before the hearing. The taxpayer operated a milk bar and contended it also operated a homestay…

Tax Month - July 2016

Shord v FCT – taxpayer held to be a ‘resident’ and taxable on foreign source income without qualifying for s23AG exemption or foreign tax offsets

A taxpayer has been unsuccessful before the Federal Court in appealing against the decision in Re Shord and FCT [2015] AATA 355. In that case, the AAT had affirmed the Commissioner’s objection decisions and found: that the taxpayer was a resident of Australia for the 2006 to 2011 income years, despite the taxpayer’s claim that he…

Tax Month - July 2016

TD 2016/13 – Reasonable travel and meal allowance amounts for 2016-17

On Friday 1.7.2016, the Commissioner issued TD 2016/13 setting out 2016/17 reasonable amounts for the following: overtime meal allowance expenses: $29.40; domestic travel allowance expenses: accommodation at daily rates (for domestic travel only); meals (showing breakfast, lunch and dinner); and deductible expenses incidental to travel. travel allowance expenses for employee truck drivers: for food and drink…

Tax Month - July 2016

NSW payroll tax: Eastside Veterinary Emergency & Specialists Pty Ltd v Chief Comr of State Revenue – degrouping discretion denied

On Thursday 26.5.2016, the NSW Civil and Administrative Tribunal affirmed the Commissioner’s decision not to de-group the taxpayer under s79 of the Payroll Tax Act 2007 (NSW). The taxpayer accepted it was properly grouped with 2 other entities for the period from 19 December 2011 to 31 August 2014. However, the taxpayer argued that it carried on different and independent businesses…

Tax Month - May 2016

Tax (financial) advisers’ code of professional conduct – draft TPB Information Sheets on Code of Professional Conduct obligations: conflicts of interest; know your client; best interests of client; etc.

The Tax Practitioners Board has issued the following Draft Information Sheets: Having adequate arrangements for managing conflicts of interest for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 5 of the Code of Professional Conduct: TPB(i) D35/2016. Code Item 5 requires registered tax (financial) advisers (and tax and BAS agents) to have adequate arrangements…

Tax Month - May 2016

LCG 2016/1 – GST: new law for supplies into Australia, including a new test for carrying on enterprise in Australia

On Thursday 26.5.2016, the ATO issued Law Companion Guideline LCG 2016/1 (GST and carrying on an enterprise in the indirect tax zone (Australia)). It discusses: a test in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016 (“the Amending Act”) for when an enterprise of an entity is carried on in the indirect tax zone (Australia);…

Tax Month - May 2016

WA land tax: Carter & Ors and Comr of State Revenue – construction of private residence exemption allowed – partition of old lot into 4 more did not matter

Four couples (the taxpayers) have been successful before the WA State Administrative Tribunal in a matter concerning a private residence construction land tax exemption. In July 2008, 4 couples purchased a property (Lot 29) intending to develop 4 new apartments. In October 2011, a partial exemption under s24A of the Land Tax Assessment Act 2002 (WA) was granted on the condition…

Tax Month - May 2016