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

Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 – Act No. 54 – tax incentives for investing in ‘early stage innovation companies’: 20% offset; capital treatment; 10 year CGT exemption

Tax Month - May 2016

The Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 received Royal Assent as Act No. 54 of 2016. This act effects the following amendments: It would amend the ITAA 1997 to encourage new investment in Australian early stage innovation companies with high growth potential by providing investors, who invest in such companies, by providing tax incentives.…

Vic land tax: Kameel Pty Ltd v Comr of State Revenue – Vendor taxpayer wins appeal; purchaser in possession is deemed the owner of land under s15

Tax Month - May 2016

The Court of Appeal of the Supreme Court of Victoria has unanimously allowed the taxpayer’s appeal from the decision in Comr of State Revenue v Kameel Pty Ltd [2015] VSC 229 in which the Court held that the taxpayer, as vendor of a parcel of commercial property was liable for land tax in the 2010 to 2012…

FCT v Bosanac – Summary judgment for $15m; claim of “conscious maladministration” fails; tax still relevantly ‘contestable’ even if bankrupted 

Tax Month - May 2016

The Commissioner has been successful in his application for summary judgment against husband wife taxpayers for amounts of $15m for assessments issued to the taxpayers for the 2006 to 2013 income years. The taxpayers sought to oppose the Commissioner’s application on the basis that the assessment process was “infected” by “conscious maladministration” on the part…

Tax Laws Amendment (Tougher Penalties for Country-by-Country Reporting) Bill 2016 [No 2] – Private members Bill to increase C-b-C reporting penalties up to 1500 units ($270k at present)

Tax Month - May 2016

On Monday 2.5.16 (on the eve of the Federal Budget, the Shadow Assistant Treasurer: Mr Andrew Leigh, introduced the Tax Laws Amendment (Tougher Penalties for Country-by-Country Reporting) Bill 2016 [No 2] into the House of Representatives, as a private members bill. An overview of this bill (extract from the Explanatory Memorandum) In 2015 Parliament passed the Tax…

Re TBCL & Anor and FCT – Super death benefit: ‘interdependency relationship’ not found on ruling facts but further ruling request ordered to cover further facts

Tax Month - April 2016

The AAT has ordered the Commissioner to request a couple (the taxpayers) to make an application for another private ruling in relation to a life insurance payout received following the death of their son. In 2013, the taxpayers’ son died in a motorbike accident. He was employed as a pilot and up to the time…

Board of Taxation launches “Sounding board” platform seeking ideas on tax regulation

Tax Month - April 2016

The Chair of the Board of Taxation, Michael Andrew, on Fri 29.4.2016 launched Sounding Board: Ideas for better tax regulation which is an online platform which allows users to submit, discuss and vote on tax system improvement ideas. “Stakeholders with day-to-day experience in navigating the system are encouraged to submit ideas on how to improve the tax system, and provide…

TA 2016/6 – Arrangement where individuals divert personal services income to an SMSF to access concessional tax rates – may offend PSI and NALI provisions

Tax Month - April 2016

On 29.4.16, the Tax Office  issued Taxpayer Alert TA 2016/6 warning individuals about arrangements purporting to divert personal services income (PSI) to a self-managed superannuation fund (SMSF) to avoid paying tax at personal marginal rates. The ATO said it is reviewing arrangements whereby individuals perform services for a client but do not directly receive any (or adequate)…

Vic: State Taxation and Other Acts Amendment Bill – introduced into the Victorian Lower House

Tax Month - April 2016

The State Taxation and Other Acts Amendment Bill 2016 (Vic) was introduced in the Victorian Legislative Assembly on Wed 27.4.2016 following the Victorian Budget. It proposes to amend the following Victorian Acts: the Payroll Tax Act 2007; the Duties Act 2000, the Land Tax Act 2005, the State Taxation Acts Further Amendment Act 2015, the Taxation Administration Act 1997, the Fire Services Property Levy…