Author Archives: John Morgan

PCG 2018/4 – When an Court appointed Executor or Administrator of a Deceased Estate will be treated as having ‘notice’ of a tax liability – safe harbour guidelines for distribution of the Estate without personal liability for tax

On Wed 22.8.2018, the ATO issued Practical Compliance Guideline PCG 2018/4, which one might be forgiven for thinking was about thepersonal liability of a legal personal representative (LPR), of a deceased person’s estate, for the tax liabilities of the deceased, at the time of death. In fact, it is only about when the Commissioner will…

Unexplained Wealth Legislation Amendment Bill 2018 – relies on States referring powers for National Co-operative Scheme on the Proceeds of Crime

The Unexplained Wealth Legislation Amendment Bill 2018 was introduced into the Lower House on 20 June 2018; was referred to the Senate Legal and Constitutional Affairs Legislation Committee on 28 June 2018, which reported on 14 August 2018; and moved to the Senate on 21 August 2018. It will amend the Proceeds of Crime Act 2002 (POC…

Dadwal v TPB – Tax agent not a fit and proper person in light of 3 indecent assaults, 15 years on sex offenders register; evasiveness or dishonesty before and after conviction

The AAT has confirmed a Tax Practitioners Board’s decision to terminate a tax agent’s registration because he was not a fit and proper person. In March 2016 the Board terminated the applicant’s registration as a tax agent as it did not consider he was a “fit and proper person”, as required by s 20-5 of the Tax Agents…

ASIC disqualifies former director from managing companies for maximum period of 5 years for engaging in illegal phoenix activity

On 16 August 2018, ASIC announced that it had disqualified Jason Andrew Hammond of Cameron Park, NSW, from managing companies, for the maximum period of five years, as a result of his involvement in three failed companies – in essence for being involved in ‘illegal phoenix activity‘. The ‘three failed companies‘ were: LLM Rivits Pty Ltd (ACN…

Fox v CofT – ESS discount assessable despite shares becoming worthless the next year as the taxpayer was not coerced into accepting rights offer

The AAT has confirmed that the taxpayer was assessable on the discount on rights to shares acquired under the ‘NewSat’ Employee Share Scheme (ESS) after it dismissed the taxpayer’s argument that she was coerced into accepting the ESS offer. NewSat was an Australian specialist satellite communications company that delivered internet, voice, data and video to…

Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Act 2018 (becomes law) – Hybrid Mismatch Rules; Film Producer Offset; Tax Exemption for World Twenty20 Cricket; Korean War Memorial DGR (Act No. 84 of 2018)

The Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018 was: introduced in the House of Reps on Thursday, 24.5.2018 and was passed in that House on 25.6.2018. introduced into the Senate on 27.6.2018 and finally passed both Houses on 16.8.2018. Received Royal Assent as Act No. 84 of 2018 on 24.8.2018…

Draft Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2018 & Insolvency (Related Creditor Voting Rights) Rules – proposed legislation for various ‘anti-phoenixing’ measures announced in 2018 Federal Budget

On 16 August 2018, Treasury released draft legislation to give effect to a range of measures to both deter and disrupt illegal phoenixing and more harshly punish those who engage in  and facilitate this illegal activity. The Government announced these measures in the 2018 Federal Budget. There is both legal and illegal ‘phoenix’ activity, and it…

IGT Review into GST Refunds – Report recommends improvements in ‘automated risk assessment tools’; notifying commencement of objection rights; awareness of hardship consequences and remedies

On 16 August 2018, the Inspector-General of Taxation (IGT) released his report into the ATO’s verification of GST refunds (before releasing the funds to the taxpayer). The IGT’s review into Goods and Services Tax (GST) refunds arose from concerns raised through the IGT’s complaints handling service and during consultation, to develop his 2017 work program. These…

Treasury Laws Amendment (OECD Multilateral Instrument) Act 2018 – to give force of law to the MLI in Australia, which in turn defines when it comes ‘into force’ and then ‘affects’ the relevant ‘bilateral treaty’

On Friday 24 August 2018 (the same day Australia got a new Prime Minister) the Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018 gained Royal Assent as Act No. 83 of 2018 (having passed the Lower House on 14 August 2018 and the Senate on 16 August). The effect of this Bill will be to amend the…

PR 2018/8 – Enova Solar Garden Project – electricity credit not assessable to Solar Gardener

On Wed 15.8.2018, the ATO issued Product Ruling PR 2018/8 about:  participation in an Enova Solar Garden Project, as a Solar Gardener, by a customer of Enova Energy Pty Ltd (Enova Retail), including the receipt of a credit on the cost of electricity supplied to the Solar Gardener over the term of the Enova Project in consideration…