Four reasons for ‘donations’ to charities and not-for-profits not being deductible – but one of them accounts for two-thirds of adjustments

On Wed 14.7.2021, issued a release reminding taxpayers to make sure they have a record of the donations they are claiming this tax time. There are 4 reasons a donation might not be deductible, but according to the ATO, nearly two thirds of the deduction adjusted last year, were because the taxpayer could not prove…

Consultation on voluntary ‘Transparency Code’ for Australian Charity sector involved in ‘natural disaster’ relief (submissions by 13.8.21)

The Federal Government is consulting on a voluntary ‘Transparency Code’ for the Australian Charity sector in relation to funds received from the public for natural disasters (such as the ‘Black Summer’ bushfires in late Dec 2019 and early 2020). A key issue is a mismatch between the expectations of donors around how their funds would be…

ATO’s Tax Practitioner Stewardship Group – 6 July 2021 Meeting – ‘TAX TIME 2021’ review for Tax Agents

On 6 July 2021, the ATO’s Tax Practitioner Stewardship Group met, to review matters of particular interest to Tax Agents, in commencing the 2020-21 income tax return lodgement season. There is a collection, here, of information and links, which Tax Agents ought to find useful. See below for further detail. [Tax Month – 2021]    …

COVID-19 support package for Victorian ‘Lockdown #5’, updates NSW ‘Lockdown #2’ package, which updated the original package for Victoria’s ‘Lockdown #4’

As a result of the snap lockdown imposed on Victoria on 15 July 2021, the Prime Minister announced a set of additional support measures for businesses and workers on 15 July 2021. The measures for shorter lockdowns have been approved by National Cabinet and will apply to all States and Territories henceforth. See below for further details. [Tax Month…

Tax Month – July 2021

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – July 2021 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 ______________________________________________________________________________  …

Munkayilar v CofT – Work-related deductions disallowed but shortfall penalty reduced (because of tax agent error)

A taxpayer employed by an organisation that delivers services to disabled people, has been denied deductions for various work-related and self-education expenses, but the AAT decided to remit the shortfall penalty by 85% (from 50% down to 7.5% of the shortfall) because of tax agent error. See below for details. [Tax Month – June 2021]…

TR 2021/D4 – Royalties: character of receipts in respect of software – for granting right to do something that is the exclusive right of the copyright owner, etc.

On Friday 25.6.21, the Commissioner issued TR 2021/D4, which considers whether, receipts from the licensing and distribution of software, qualify as royalties (under the s 6(1) ITAA 1936 definition). It focuses on 3 software distribution models – packaged software, the digital distribution of software and cloud computing arrangements. See below for further detail. [Tax Month – June…