Vic land tax: Vasiliades v Comr of State Revenue – PPR exemption refused – no jurisdictional error in assessing in and then reassessments

On Fri 9.9.2016, the Victorian Supreme Court held there was no jurisdictional error by the Commissioner in issuing land tax reassessments for the 2009 to 2011 assessments years. The taxpayer sought judicial review of assessments made by the Commissioner for land tax payable by her in respect of a property for the 2009, 2010 and…

Qld land tax: Vikpro Pty Ltd v Wyuna Court Pty Ltd –prohibition on landlords passing land tax on to lessees did not survive 2009 & 2010 amendments

In a majority decision (Philippides JA dissenting), the Qld Court of Appeal affirmed that an appellant (lessee) was liable to pay land tax pursuant to a lease. The appellant was the lessee, and the respondent the lessor, under a sub-lease of a property entered in August  2006 for a 70 year term. Clause 11.2 of the head lease required the lessee to pay…

Irish Government wins strong backing from its Parliament for EU Apple appeal

Ireland’s Government has won strong backing from the Irish Parliament for its appeal against a €13-billion back tax bill the European Commission ordered it to collect from Apple, following 12 hours of debate on 7 September. Reuters said Ireland’s fragile coalition overcame initial misgivings from independent members of cabinet to join Apple in fighting the…

Re DTMP and FCT – taxpayer’s late request for an expansion of her grounds of appeal denied for the primary tax because FCT prejudice (would have assessed others) but allowed for penalties (no prejudice)

Re DTMP and FCT – Grounds expansion requests: primary tax denied, but penalty allowed A taxpayer has been largely unsuccessful before the AAT in seeking to expand her grounds of objection against income tax assessments and associated penalties. The taxpayer was issued with an amended income tax assessment within time allowed by s 170(1) of the…

Re RSPG and FCT – AAT denies taxpayer 91% credits for ITCs on construction of a retirement village – given large percentage of ‘residential premises’

On 7 September 2016, the AAT affirmed the Commissioner’s objection decision and rejected a taxpayer’s claim to input tax credits (ITCs) on 91% of the cost of acquisitions for the construction of Stage 1 of a retirement village. The case concerned the extent to which acquisitions made in the course of the construction of the…

Agricultural Land Register – First Report – 13.6% of agricultural land foreign owned and UK holds more than all the rest put together (52%)

On 7 September 2016, the Treasurer released Australia’s first report from the Agricultural Land Register, delivering on the Government’s commitment to increase scrutiny and transparency in Australian agriculture. The Land Register shows foreign investors hold just 13.6 per cent of all Australian agricultural land. The United Kingdom is Australia’s principal source of investment in agriculture with…

FCT v AP Energy Investments Ltd – non-resident’s sale of shares not taxable in Australia – ‘principal asset’ not real estate – ‘sunk cost’ method of valuing mining information was ok

A brief summary of the facts – [2016] FCA 577 The taxpayer, AP Energy Investments Pty Ltd (AP Energy), is a non-resident of Australia for taxation purposes. AP Energy (over the period December 2006 to January 2008) had purchased shares in Abra Mining Limited (Abra) an ASX listed base metals exploration and development company. On…

Transition to Retirement Income Streams (TRIS) ‘integrity’ changes – income in fund on supporting assets no longer exempt (15%) and concessions on receipt also changed

The measure – The Government will remove the tax exempt status of income from assets supporting TRIS. These earnings will now be taxed concessionally at 15 per cent. Individuals will also no longer be allowed to treat certain superannuation income stream payments as a lump sum for tax purposes. [Treasury website – Super Changes] The issue –…

Spouse contributions: 18% tax offset (up to $540) – will be extended to spouses earning up to $40k (up from $10,800)

The Measure – Currently, a tax offset of up to $540 is available for individuals who make superannuation contributions to their spouses with incomes up to $10,800. The Government will allow more people to access the offset by extending eligibility to those whose recipient spouses earn up to $40,000. There are no changes to the current…

‘Catch‑up’ concessional contributions will be allowed – unused concessional contribution limits can be rolled forward for 5 years – for account balances of $500,000 or less

The measure – From 1 July 2018, the Government will help people ‘catch‑up’ their superannuation contributions by allowing individuals with account balances of $500,000 or less to rollover their unused concessional caps (for up to 5 years) to use if they have the capacity and choose to do so. [Note: this July 2018 commencement date…