Author Archives: John Morgan

Woods v Australian Taxation Office & Ors – the taxpayer alleged the ATO breached a contract and was owed money, net of her tax, and alleged that her tax had been paid by promissory notes, but her claim was struck out

A taxpayer has been unsuccessful before the Qld District Court in a matter concerning alleged promissory notes to discharge a tax debt and claimed breaches of alleged contracts by the ATO. The taxpayer commenced legal proceedings for money said to be owing to her pursuant to 2 contracts said to have arisen between herself and,…

Voluntary Tax Transparency Code (recommended by the BofT) – The ATO will receive information volunteered and provide access as the responsible entity for its administration

As the responsible agency for administering the Board of Taxation’s Voluntary Tax Transparency Code (TTC), the ATO uploaded information about the new Code (and its role in administering it). [ATO website] [LTN 153, 10/8/16] Background to TTC By way of background the ATO notes that the Tax Transparency Code (TTC) is a set of principles…

Offshore Marketing Hubs – draft Practical Compliance Guideline issued – 5 stage ‘traffic light’ system of risk assessment for reporting and compliance attention – starting with ‘green’ for no more than 100% markups

On 10 August 2016, the ATO released a draft practical compliance guideline (PCG) dealing with the use of offshore marketing hubs. The media release the draft PCG outlines how the ATO proposes to treat transfer pricing issues related to the location and relocation of certain business activities and operating risks into centralised operating models, commonly referred to…

TA 2016/9 – Commissioner alerts taxpayers that, in his view, ‘debt interests’ treated as ‘equity’ for accounting purposes, can be valued as $nil for ‘thin capitalisation’ purposes

On 10 August 2016, the ATO issued TA 2016/9 (the 3rd of 3 on that day). It alerts taxpayers that the Commissioner does not agree with a construction of the ‘thin capitalisation’ provisions in Div 820 of the ITAA97, where a taxpayer issues a ‘debt interest’ that is treated by ‘accounting standards’ (AASB 132) as…

TA 2016/8 – GST concerns about ‘MAAL’ defeating restructures that involve ‘swapping’ roles so that the Australian support company ‘distributes’ (as principal) for the foreign supplier

On Wednesday 10.8.16, the ATO released TA 2016/8 (the 2nd of 3). It addresses the ATO’s GST concerns about arrangements being made to avoid the operation of the Multinational Anti-Avoidance Law (MAAL), where the previous foreign supplier of intangible products or services (to Australia customers) now supplies to an Australian distributor (who distributes as principal) although…

TA 2016/7 – Consolidated company groups with an foreign ‘permanent establishment’ over-stating the s23AH income that is not assessable or over-claiming deductions incurred to acquire non-assessable income

On Wednesday 10 Aug 2016, the ATO issued TA 2016/7 (the first of 3 on that day). It relates to arrangements they have seen of Australian company groups that have elected to consolidate, for Australian income tax purposes, with one of those companies having an off-shore Permanent Establishment (PE). There is a tension here between…

$500k lifetime limit on post tax super contributions – Treasurer indicates no lift in amount but some exemptions confirmed

The Treasurer has confirmed that there will be some changes to the Government’s proposal for a lifetime cap of $500,000 on non-concessional superannuation contributions (in a radio interview on 2GB on Monday 8.8.16).These had been announced in the election campaign.  if you get a pay-out as a result of an accident or something like that…

Vic land tax:  Ward v Comr of State Revenue – PPR exemption allowed for “world-traveller whose wife lives in Canada”

The Victorian Civil and Administrative Tribunal has set aside land tax assessments for the 2011 to 2015 land tax years issued to a taxpayer after finding that the principal place of residence (PPR) land tax exemption applied to his circumstances. In 2003, the taxpayer was left a property in his mother’s will. After moving into…

Vic land tax: Robbins v Comr of State Revenue – principal place of residence exemption refused in the face of unsatisfactory evidence

The Victorian Civil and Administrative Tribunal has affirmed land tax assessments after rejecting the taxpayer’s claim for the principal place of residence (PPR) exemption. The taxpayer owned 2 properties, one located in Sandringham and the other in Balnarring. Both properties were connected to water, gas and electricity services. The Commissioner issued land tax assessments for…

NSW stamp duty: Oak Brick Investment Pty Ltd & Anor v Chief Comr of State Revenue – ‘call option’ re-negotiated with grantor to entitle an new party the option to buy – not an assignment and not dutiable

Two taxpayers have been successful before the NSW Supreme Court in a matter concerning whether they were to be treated as having assigned their rights under a call option and therefore liable to duty under s107(2)(b) of the Duties Act 1997 (NSW). On 24 September 2013, the taxpayers entered into an option deed with a vendor under which they…