T a x T e c h n i c a l – M o n t h l y N e w s – August 2018 Developments – This is a collection of developments in Australian tax law and practice that occurred in August 2018 which aims to be relevant to tax practitioners.[i] Compiled By F…
On Wed 18.7.2018, the ATO issued Class Ruling CR 2018/32 (Mantra Group Limited – Employee Share Scheme – Tax Exempt Share Plan Shares disposed of under Scheme of Arrangement). This ruling considers the application of the employee share scheme rules in Div 83A of the ITAA97 to employees of Mantra Group Limited whose shares in the…
On Friday 20 July 2018, Treasury released draft legislation to extend the definition of a significant global entity (SGE) by including members of large multinational groups headed by proprietary companies, trusts, partnerships and investment entities. For the moment, this draft is styled the: Treasury Laws Amendment (Measures for a later sitting) Bill 2018. This measure was…
There are numerous suppliers of self managed superannuation fund (SMSF) deeds and other documents, apart from law firms with SMSF expertise and no shortage of accountants, financial advisers and ultimately clients, prepared to use their documents and services. In a longer article, DBA Laywers looked at the issues with the non-lawyer part of this industry…
Article by Daniel Butler of DBA Lawyers on17/07/2018 in SMSF compliance, SMSF deeds, SMSF strategy, Trustee education Introduction There are numerous suppliers of self managed superannuation funds (‘SMSFs’) deeds apart from law firms with SMSF expertise. These days, for instance, there are a range of other (non-qualified) suppliers who supply SMSF deeds. These suppliers may deliver complex documents without…
On 18 July 2018, the ATO issued Taxation Determination TD 2018/13, which considers whether a Div 7A interposed entity rule (s109T of the ITAA36) can apply to an ordinary commercial payment, or loan from a private company to an interposed entity. The Commissioner concludes that it can apply, which is to say that a two step…
The AAT has affirmed a decision by ASIC to disqualify an approved SMSF auditor for failing to comply with the auditor independence requirements by auditing the SMSFs of close family members. The applicant, an accountant since 1975, had conducted numerous audits of SMSFs since 1999. Following an ATO compliance review, it was revealed that she had…
With 30 June clicking over, the managed funds and superannuation industry has been busily producing year end tax reporting on behalf of investors and members. A core element of this is reflecting on whether any major corporate actions took place in the preceding 12 months and the tax implications. This year was no different, but…
The Federal Court has granted the Commissioner a freezing order of the assets of a taxpayer concerning a $7.5 million tax debt. The Commissioner had sought freezing orders against the taxpayer under Division 7.4 of the Federal Court Rules 2011 (Cth). After hearing counsel for the Commission, Colvin J made orders substantially in the terms sought.…
On Tuesday 17 July 2018, the Government released exposure draft regulations, proposing to extend SuperStream to include rollovers to and from self-managed superannuation funds (SMSFs). The Minister previously announced this measure, on 27 April 2018, at the same time as announcing that SMSFs will be allowed to have up to 6 members (instead of only 4). She announced…