Div 293 Superannuation tax assessment notices to issue in December 2018 to individuals over the newly reduced ‘high’ income threshold – 15% tax on ‘low tax contributions’ (new notices with more info)

On 27.11.18, the ATO advised that it will begin issuing superannuation Division 293 tax assessments in December 2018. The ATO said it has redesigned the notice of assessment for Division 293 tax to include further details to explain: what Div 293 tax is, why the additional tax applies, how much additional tax needs to be paid and what…

Placer Dome case in Hight Court – Barrick Gold loses $55m ‘land rich’ duty fight over it’s $15b takeover of the gold miner in 2006

Australian Financial Review article, by Michael Belly, Legal Editor, 5 Dec 2108 (Paper, p2 of the 6.12.18 edition) See also: Tax Technical articles: Case Note; Seminar Slides   The West Australian tax commissioner hit Barrick Gold with “land rich” stamp duty on its $15 billion takeover of Placer Dome in 2006, and if the miner…

‘Excess super contributions’ – ATO begins issuing ‘determinations’ for 2017/18 (first after universal $25k cap came in) with amended assessments and ‘authorities’ to super funds for release of money to ATO to pay the contributor’s tax

On 27.11.18 the ATO posted an article saying it has begun issuing determinations for excess concessional contributions (ECC) for the 2017-18 financial year. The ATO said it will be issuing a higher volume of ECC determinations for 2017-18, following the reduction in the concessional contributions cap to $25,000 for all taxpayers. Taxpayers who receive an…

Ransley v CofT – Profit on sale of mining shares assessable as ‘ordinary income’ – not a capital gain protected by ‘scrip for scrip’ rollover – 50% ‘reckless’ penalty upheld

The AAT has decided that the profit on the sale of shares was assessable income and not, as contended by the taxpayer, a capital gain. The taxpayer was a shareholder in a company (DCM) which was granted an Exploration Licence in respect of the Doyles Creek tenement. The taxpayer was also a shareholder in ResCo,…

TA 2018/3 – Tax Alert relating to GST underreported by developers on development works on land from Government Entities – including by mis-applying the ‘margin scheme’

On Mon 26.11.2018, the ATO released Taxpayer Alert TA 2018/3 – GST implications of certain development lease arrangements. It relates to GST which the ATO says has been under reported by developers, on development works undertaken on land acquired from Government Entities. The ATO gives 2 examples: The first is where a Government Entity supplies land,…

ACNC – standards made for ‘registered entities’ operating outside Australia – activities consistent with its charitable purpose; obey Australian Laws; no fraud or bribery; protect vulnerable people

The Australian Charities and Not-for-profits Commission Amendment (2018 Measures No. 2) Regulations 2018 were registered on the Federal Register of Legislation on Mon 26.11.2018. It amends the Australian Charities and Not‑for‑profits Commission Regulation 2013. These Amending Regulations are made under s50-10 of the Australian Charities and Not‑for‑profits Commission Act 2012, which allows regulations to be prescribed setting out ‘external…

NSW payroll tax system – Government’s response to Productivity Report announced – accepting all 12 recommendations including: three-tiered payment, lodgement and reconciliation model, 50% prompted voluntary compliance discount, efforts to standardise definitions and forms

On 22.11.18, the New South Wales Treasurer announced a reform to the administration of payroll tax in NSW that could seriously reduce compliance costs. He announced: from next year payroll tax administration will be streamlined with the introduction of equal automated payments making payroll tax a set-and-forget affair, rather than a monthly hassle He also…

Exchange of Information Countries – 54 added by new regulation – giving lower 15% MIT withholding tax rights (most added through the MLI process)

The Taxation Administration Amendment (Updating the List of Exchange of Information Countries) Regulations 2018 (the Updating Regulations) were registered on 23.11.18 and have effect from the following day (24th Nov 2018). They add: Albania, Andorra, Austria, Azerbaijan, Bahrain, Barbados, Brazil, Brunei, Bulgaria, Cameroon, Chile, Colombia, Costa Rica, Croatia, Cyprus, Dominica, Estonia, Faroe Islands, Georgia, Ghana,…

PCG 2018/D8 – ‘swim between the flags’ compliance guidance for related party, inbound, distributors – eg. general distributors: EBIT above 5.5% of sales, motor vehicle distributors: EBIT above 4.3% of sales

On 23.11.18, the ATO released Draft Practical Compliance Guideline PCG 2018/D8 – Transfer pricing issues related to inbound distribution arrangements. It outlines the ATO’s intended compliance approach (or the amount of audit attention, they will apply ) to the transfer pricing outcomes associated with the following activities of inbound distributors: distributing goods purchased from related…

‘Black economy’ – further consultation paper released on: further penalties; reverse onus of proof; record keeping for gambling & gifts; penalties for misrepresenting ‘sham’ contracts, ATO law enforcement agency; Freezing Order extension; ATO compel 3rd party info; Federal Courts hear offence matters

On 22.11.18, the Assistant Treasurer announced the release of consultation paper released today is another step towards implementing the Government’s response to the recommendations of the Black Economy Taskforce final report. This consultation comes in the context of the review that the Government announced, as part of the 2018-19 Budget, it would conduct, of existing criminal…