Today [Wed 10.2.2016], the ATO issued Class Ruling CR 2016/9 (Qantas Airways Limited – employee share schemes – return of capital). The Class Ruling applies to employees of Qantas Airways Limited and its subsidiaries who have participated in various Qantas employee shares schemes. It outlines the tax consequences to participants of Qantas’ $505m capital reduction and share…
The taxpayers in the following cases all applied for special leave to appeal to the High Court. Bywater Investments Ltd & Ors v FCT [2015] FCAFC 176. The Full Federal Court had dismissed the taxpayers’ appeals from 2 Federal Court decisions that had held the taxpayers were residents of Australia for tax purposes and were liable…
The ATO has set out its “Service Commitment” to taxpayers in resolving disputes in response to a recommendation made by the Inspector-General of Taxation. In this context, a dispute refers to an objection, a review by the AAT or an appeal to a Court. The ATO said it recognises that when disputes are not managed well, the…
The Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 was introduced in the House of Reps on Wed 10.2.2016. It proposes the following amendments: Extending GST to digital products and other imported services – Schedule 1 amends the GST Act to ensure that digital products and other imported services supplied to Australian consumers by foreign entities…
A taxpayer has been successful before the NSW Civil and Administrative Tribunal in obtaining a marriage break-up transfer exemption from stamp duty under s 68 of the Duties Act 1997 (NSW). The taxpayer married Mr H in 2003. The couple occupied premises in Greenacre owned by Mr H. On 3 November 2011, the taxpayer and Mr H made an oral…
The ATO says it has completed a pilot trial with participating businesses to test and refine a methodology to determine Effective Taxes Borne (ETB) and its use in analysing the Australian and global tax performance of multinationals. According to the ATO, its pilot findings show ETB as an effective risk and compliance tool to help it identify…
The ATO has, on Tuesday 9.2.2016, released on its Legal Database a series of what till now have been internal ATO documents entitled “interpretation NOW!” (iNOW!). The documents (or “Episodes” as they are called) are an ATO Tax Counsel Network (TCN) initiative and aim to raise awareness about what courts are saying about statutory interpretation.…
In a decision handed down on Mon 8.2.2016, the Appeal Panel of the NSW Civil and Administrative Tribunal refused a taxpayer leave to appeal an earlier decision which had refused the primary production land tax exemption for bee-keeping. The Tribunal had affirmed land tax assessments after finding that the taxpayer’s use of the relevant land for…
The Tax Laws Amendment (Implementation of the Common Reporting Standard) Bill 2015 was passed, on Mon 8.2.2016, by the House of Representatives, without amendment. The Bill proposes to amend Sch 1 to the Taxation Administration Act 1953 to insert a new Subdiv 396-C (as part of Div 396 – Third Party Reporting, along with the FATCA provisions). It will require certain financial…
The Tax and Superannuation Laws Amendment (2015 Measures No 6) Bill 2015 was passed by the House of Reps on Thursday 4.2.2016 without amendment and now moves to the Senate. The Bill proposes the following amendments: Will amend the ITAA 1997 to change the CGT treatment of the sale and purchase of businesses involving certain earn-out rights –…