John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

SMSF compliance action and focus areas: ATO speech at Tax Institute’s National Superannuation Conference in Melbourne

Tax Month - August 2016

The ATO has provided a report on compliance outcomes in 2015-16 and focus areas for 2016-17. Speaking at the Tax Institute’s National Superannuation Conference on 25 August 2016, Assistant Commissioner Kasey MacFarlane discussed the following topics: Compliance outcomes in 2015-16 reflect an increasing use of new compliance enforcement tools available to the ATO since 1 July 2014. During the course of 2015-16,…

Budget Savings (Omnibus) Bill – introduced: many savings including some tax related e.g. reducing R&D off-sets by 1.5 percentage points

Tax Month - August 2016

On 31.8.16, the Budget Savings (Omnibus) Bill 2016 was introduced in the House of Reps. It seeks to achieve savings across multiple portfolios to contribute to Budget repair. The Bill would implement measures announced in the 2016-17 Federal Budget and earlier Budget updates. Some of the changes include: Single touch payroll reporting – creates a new reporting framework,…

NSW stamp duty: Rulings – Commissioner insists that ‘market value’ must be GST inclusive; how the aggregation of dutiable transactions provision will be applied

Tax Month - August 2016

The NSW Office of State Revenue (OSR) has issued the following Revenue Rulings: Revenue Ruling DUT 045 (Market value and GST). It states that the Chief Commissioner will not accept a valuation as a market valuation if it is expressed to be determined on a GST-exclusive basis, or has been made on that basis, or the…

FCT v Croft & Anor – Guarantee for debts of taxpayer company binding, under s3A general power of administration, despite deficient delegation (later ratified) and FCT allegedly breaching express term not to recover company’s debt, by garnishee, which interfered with company’s ability to meet its instalments, triggering the guarantors’ liability

Tax Month - August 2016

The Supreme Court of Queensland has held that personal guarantees given by a husband and wife, in relation to an agreement they entered into, with the Commissioner, were binding on the guarantors. They guaranteed that their company would pay its tax debt, by way of instalments. The company defaulted and the guarantors were liable for…

Taxpayer appeals from Bywater Investments Ltd & Ors v FCT (previously Hua Wang Bank Berhad v FCT) on residency and trading stock – High Court transcripts of hearing released

Tax Month - August 2016

The High Court has released transcripts of its hearings of the taxpayers’ appeal, heard in Canberra, against the decision of the Full Federal Court in Bywater Investments Ltd & Ors v FCT [2015] FCAFC 176 was heard by the High Court on 24 August 2016 (HCATrans 183) and 25 August 2016 (HCATrans 184). The Full Federal Court had dismissed the taxpayers’…

Taxpayer appeal from FFC decision in Blank v FCT that $160m in profit participation agreement, on termination of his employment with Glencore was income – High Court transcript released

Tax Month - August 2016

The High Court has released the transcript from the hearing (in Canberra) from the Full Federal Court decision in Blank v FCT [2015] FCAFC 154. The appeal was heard by the High Court on 23 August 2016 (HCATrans 181) and 24 August 2016 (HCATrans 182). The Court reserved its decision. In a majority decision, the Full Federal Court had dismissed the taxpayer’s…

Re Carr and FCT – the Commissioner issued default assessments for 2003 to 2006, totalling $2m, based on a loan from a bank and other unexplained deposits – the Taxpayer failed to prove that these assessments were excessive (only ‘meagre’ evidence)

Tax Month - August 2016

A taxpayer has failed before the AAT to discharge the onus of proving that default assessments issued to him for the 2003 to 2006 income years for over $2m in taxable income were excessive. In doing so, the AAT emphasised that not only did the taxpayer have to prove that the assessments were excessive but, also,…

ACNC revokes the registration of 503 ‘double defaulters’ as charities – denying them access to Cwth tax concessions

Tax Month - August 2016

On 26 August 2016, the national charities regulator: the Australian Charities and Not-for-profits Commission (ACNC), revoked the charity status of 503 charities, for failing to submit their Annual Information Statement after a warning and then failing to lodge for the second consecutive year. In other words, they were all ‘double defaulters’. The consequence of this is…

Tas Taxation: Miscellaneous Amendments Bill introduced – changes include: retrospective duty refund on matrimonial breakdown; land tax free thresholds for clubs; FHOG increase to $20k; 5 year amendment and refund periods and offset refunds and tax

Tax Month - August 2016

The Tasmanian Treasurer introduced the Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 (Tas) into the Tasmanian House of Assembly on 25.8.2016. It proposes to amend the following Tasmanian Acts: the Payroll Tax Act 2008; the Duties Act 2001; the Land Tax Act 2000; the First Home Owner Grant Act 2000; and the Taxation Administration Act 1997. The key changes are as…

Oswal v FCT (No 6) – Taxpayers succeed in application for mediation of tax dispute, with the same mediator in a commercial dispute, as one might affect the other (despite mediation having failed and judgement being reserved in the tax case)

Tax Month - August 2016

Husband and wife taxpayers (“the Oswals”) have been successful in their application before the Federal Court to seek mediation of their tax dispute with the Commissioner to be heard by a judge in Victoria who was also conducting the mediation of their commercial dispute with another party. The Court arrived at its decision essentially on…