Re Miley and FCT – Small Bus CGT relief: AAT decided that taxpayer passed the $6m test by applying a discount to actual proceeds on the basis that it was a non-controlling interest (despite control passing by others joining to sell all the shares)

The Commissioner has appealed to the Federal Court against the decision in Re Miley and FCT [2016] AATA 73. In that case, the AAT ruled that the “market value” of a parcel of shares that a taxpayer sold in a private company in an arm’s length transaction (together with the other 2 shareholders’ shares in the company) was…

Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2016 – received Royal Assent as Act No 23 of 2016 – inserting new Subdiv 396-C (after the FATCA provisions)

Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2016 – received Royal Assent as Act No 23 of 2016. The Bill amends Sch 1 to the Taxation Administration Act 1953 to insert a new Subdiv 396-C to require certain financial institutions in Australia (known as Reporting Financial Institutions) to report information to the Commissioner about financial accounts…

Superannuation Legislation Amendment (Choice of Fund) Bill 2016 – freedom to chose superannuation fund extended to employees under enterprise agreements / workplace determinations made after 1 July 2016

The Superannuation Legislation Amendment (Choice of Fund) Bill 2016, introduced in the House of Reps on Thur 17.3.2016, proposes to extend superannuation choice of fund to employees covered by enterprise agreements and workplace determinations made from 1 July 2016. Currently, employers who make contributions in accordance with an enterprise agreement or workplace determination are deemed to comply with…

The Commissioner’s ‘Remedial Power’ to modify the law to give better effect to its intended purpose – 2016 Measures No. 2 Bill

The Commissioner’s ‘Remedial Power’ Tax and Superannuation Laws Amendment (Measures No. 2) Bill 2016 – Schedule 1, will introduce a new Div 370 into the First Schedule to the Taxation Administration Act 1953 (TAA1), subdiv 370-A of which, will give the power the Commissioner to modify the tax law, by legislative instrument, where he thinks…

Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 – introducing a ‘remedial power’ for the Commissioner to exercise by legislative instrument

The Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 was introduced in the House of Reps on Thur 17.3.2016. It proposes the following amendments: Commissioner’s remedial power – proposes to establish a remedial power to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation laws. The power allows…

Inquiry into the External Scrutiny of the Australian Taxation Office – a submission of the Inspector-General to the House of Representatives Standing Committee on Tax and Revenue (copy attached)

A submission of the Inspector-General to the House of Representatives Standing Committee on Tax and Revenue inquiring into the External Scrutiny of the Australian Taxation Office (copy attached) EXECUTIVE SUMMARY The IGT welcomes the opportunity to make submission to the House of Representatives Standing Committee on Tax and Revenue (the Committee) to assist in its Inquiry…

External scrutiny of ATO: Tax Inspector-General submission to Parliamentary Committee

The Inspector-General of Taxation has made a submission to the House of Representatives Standing Committee on Tax and Revenue’s inquiry into the external scrutiny of the ATO. While supporting the removal of duplication and inefficiencies, the Inspector-General said any major policy change to reduce external scrutineer functions needs to be informed by a comprehensive analysis that weighs…

Re The Trustees of the WT & A Norman Superannuation Fund and FCT – AAT finds that s177EA operated to cancel the ‘imputation benefits’ from an SMSF’s ‘dividend washing’ transactions

The ATO on Thur 17.3.2016, issued Decision Impact Statements on the following: Re The Trustees of the WT & A Norman Superannuation Fund and FCT [2015] AATA 914 – In this case, the AAT confirmed that the imputation scheme benefit provisions in s 177EA of the ITAA 1936 applied to an arrangement whereby 2 related trusts disposed…

Orica Ltd v FCT – Federal Court found that interest deductions for an international ’round-robin’ were denied by Part IVA

The ATO on Thur 17.3.2016,  issued Decision Impact Statements on the following: Orica Ltd v FCT [2015] FCA 1399 – In this case, the Federal Court held Pt IVA applied to a scheme whereby deductions of $112m were claimed for interest on inter-corporate loans made by an Australian subsidiary of a US corporate group. In doing so,…

Treasury Legislation Amendment (Repeal Day 2015) Bill 2016 – Sched 1 removed (SGC simplifications removed)

The Treasury Legislation Amendment (Repeal Day 2015) Bill 2016 was on Wed 16.3.2016, passed by the House of Reps with 2 Opposition amendments. The amendments removed Sch 1 from the Bill. The Bill now proceeds to the Senate. Schedule 1 had proposed to simplify the superannuation guarantee (SG) charge and make the SG charge and penalty more proportionate to…