On 3.9.2020, the Australian Financial Review posted an article by its Senior writer: John Kehoe, entitled: ‘Australia falling behind corporate tax cuts‘. It chronicles the way other countries are dropping their headline corporate tax rate and percentage of tax revenues represented by corporate income tax, leaving Australia uncompetitive for investment – right when Australia needs…
T a x T e c h n i c a l – M o n t h l y N e w s – September 2020 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner. Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ COMPILING…
In August 2020, the Inspector-General of Taxation and Taxation Ombudsman (IGTO), Karen Payne, has released edition 13 of the IGT’s newsletter – “IGot News”. In this edition, the IGTO reflects on complaints in relation to COVID-19 support measures (JobKeeper, Cashflow Boost and Early Access to Super), key achievements in FY20 and what’s to come in…
On 14 August 2020, the Treasurer made the 7th amendment to the JobKeeper rules – the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No 7) 2020. This was to change the JobKeeper employment reference date to 1 July 2020 (from 1 March 2020) for determining employee eligibility – for fortnights that commence on or after 3 August 2020. This was…
On Wed 12.8.2020, the ATO released a draft updated version of Practical Compliance Guideline PCG 2017/4, with a new draft a Schedule 3: dealing with interest-free loans between related parties.[PCG 2017/4DC2] See below for details. [Tax Month – August 2020]
On Wed 12.8.2020, the ATO issued the following products to provide guidance on applying the arm’s length debt test in the thin capitalisation rules: TR 2020/4 and PCG 2020/7. See below for details. [Tax Month – August 2020]
On 5 August 2020, The AAT has ruled that an approved SMSF auditor should not have been disqualified by ASIC for breaching the auditor independence rules in relation to his family self-managed superannuation fund (SMSF). See below for details. [Tax Month – August 2020]
The taxpayer has appealed to the Federal Court from the decision in Hamilton and FCT [2020] AATA 1812, which upheld the Commissioner’s ruling that the taxpayer’s income from short-term assignments with the International Monetary Fund (IMF) was not exempt from tax under the International Organisations (Privileges and Immunities) Act 1963. The tests in the High Court case…
Treasury has updated (to 10 August) its fact sheet, Extension of the JobKeeper Payment, to incorporate the further revisions to JobKeeper 2.0 announced by the Prime Minister on 7 August 2020. Those changes will adjust the employee eligibility reference date to 1 July 2020 and revise the turnover test. See below for details. [Tax Month – August 2020]
On Fri 14.8.2020, the ATO issued Taxpayer Alert TA 2020/3 expressing concern about arrangements involving interposed offshore entities, to avoid Australian tax on the Australian profits and interest withholding tax liabilities on the off-shore interest payments. See below for details. [Tax Month – August 2020]