Author Archives: John Morgan

Rigoli v. Commissioner of Taxation – Full Court agreed that the taxpayer failed to discharge his onus by only relying on the report the Commissioner used to raise the default assessment

On 15 March 2016, judgment was handed down by the Full Federal Court (Kenny, Davies and Moshinsky JJ) in the matter of Rigoli v. Commissioner of Taxation [2016] FCAFC 38  (VID 475 of 2015).  Mr Rigoli’s appeal was dismissed with costs. This appeal concerns what Mr Rigoli is required to prove to discharge the burden of…

Forestry & Agricultural MIS – Senate Economics Committee’s report after the collapse of Timbercorp, Great Southern and others – 24 recommendations

The Senate Economics References Committee on 11 March 2016 finally released its report into the structure and development of forestry (or agribusiness) managed investment schemes (MIS). It was originally due for release by 27 October 2014. Their terms of reference were issued after the spectacular crash of Timbercorp, Great Southern and others, creating legal turmoil, agricultural fall out and harrowing financial…

Financial Synergy Holdings Pty Ltd v. Commissioner of Taxation: cost base of asset deemed to be acquired before 20 September 1985 to be calculated as at the actual date of acquisition (taxpayer wins)

 On 10 March 2016, Full Federal Court handed done its decision which was to overturn the decision at first instance decision in favour of the Commissioner: [2015] FCA 53. The facts in this case involved a family trust that had owned units in a unit trust prior to the introduction of capital gains tax on 20 September 1985 (therefore…

Significant entities ($1b global turnover) who may be affected by the Multinational Anti-Avoidance Law – should contact the ATO by 31 March 2016

On Friday 11 March 2016, the ATO advised (on its website) that there are three weeks left to notify us if you think your arrangements may be within the scope of the Multinational Anti-Avoidance Law (MAAL). If you meet the definition of a significant global entity (AUD 1b turnover) and are potentially impacted by the…

MIT Bills – Senate committee recommends they be passed

The Senate Economics Legislation Committee has recommended that the package of Bills to implement a new system for taxing Managed Investment Trusts (MIT) be passed. The Committee handed down its report on the Bills on Thur 10.3.2016. The Bills are: Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015. Income Tax Rates Amendment (Managed…

LCG 2015/D1 – Purpose, nature and role of ATO’s Law Companion Guidelines – whenever a new law introduces a new regime or unfamiliar concept etc.

Draft Law Companion Guideline LCG 2015/D1, issued on Thur 10.3.2016, discusses the purpose, nature and role of the Law Companion Guideline, a type of public ruling on newly enacted tax legislation. The ATO began publishing Law Companion Guidelines in 2015 and intends to issue a Guideline whenever a new law introduces a new regime or unfamiliar…

GST – taxing digital imports (Netflix tax) & cross-border amendments – Committee reports in favour of passing the Bill

The Senate Economics Legislation Committee on Thur 10.3.2016, released its report into the Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 and recommended the Bill be passed. The Bill had been passed by the House of Reps without amendment. The Bill proposes to: extend GST to digital products and other services imported by consumers. GST will…

CR 2016/12 & 13 – No car parking fringe benefit; in-specie distribution on demerging is not a ‘dividend’ (and ‘anti-streaming’ rules will not apply)

Two Class Rulings were issued on Wed 9.3.2016: CR 2016/12 (FBT: employers who are clients of United Airport Parking Pty Ltd and who enter into the Corporate Car Parking Agreement). The Class Ruling provides that a car benefit does not arise for FBT purposes while an employer’s car is parked at the United Airport Parking’s lock up car parking…