The Federal Court has dismissed a Deputy Commissioner’s application for an order that a company be wound up in insolvency essentially on the basis that the ATO had not complied with s 109X of the Corporations Act 2001 and s 28A of the Acts Interpretation Act 1901. The statutory demand sought the payment by the…
The Federal Court has dismissed an appeal by a taxpayer, a former senior tax officer, against an earlier AAT decision, which held that a termination payment made to her because her services could no longer be effectively utilised by the Tax Office, was not a “genuine redundancy payment” under s 83-175 of the ITAA 1997.…
The Federal Court has dismissed the appeal of a taxpayer who claimed that the capital proceeds it was entitled to receive for the sale of its publishing business was less than the $4.1m assessed to it by the Commissioner. The taxpayer broadly argued that the effect of a “payment by direction” mechanism, whereby a related…
The Full Federal Court has unanimously confirmed the decision in Noza Holdings Pty Ltd & Ors v FCT [2011] FCA 46 that the head company of an Australian group of consolidated companies (“Noza”) was entitled to a deduction under s 25-90 of the ITAA 1997 (deductions for ‘debt interest’ costs incurred in deriving foreign non-assessable…
A notice has been gazetted specifying the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2012-13 financial year. The details are: For repayment income in the range Percentage rate to be applied to repayment income Below $49,095 Nil $49,095 to $54,689 4.0% $54,689 to $60,280 4.5% $60,280 to $63,449…
A notice has been gazetted specifying the repayment incomes and repayment rates for the Student Financial Supplement Scheme (SFSS) for the 2012-13 financial year. The details are: SFSS repayment rates from 1 July 2012 For repayment income in the range Percentage rate to be applied to repayment income Below $49,096 Nil $49,096 to $60,279 2.0%…
The ATO has advised that Australia has signed new Tax Information Exchange Agreements (TIEA) and Agreements to allocate taxing rights over certain income and transfer pricing adjustments (ATR) with: Aruba – both the TIEA and ATR entered into force on 17 August 2011. Cook Islands – the TIEA entered into force on 2 September 2011,…
The Assistant Treasurer has announced the Government will extend the start date for the 2011 Budget proposal to better target tax concessions provided to not-for-profit organisations (NFPs) from 1 July 2011 to 1 July 2012. Under the proposal, the NFP income tax concessions will only apply to profits generated by unrelated commercial activities that are…
The Taxation Administration Act 1953 – PAYG Withholding – Variation of withholding for low income minors where no TFN or ABN provided was registered on the Federal Register of Legislative Instruments on Wed 18.4.2012. It varies to nil the amount required to be withheld by a payer who makes payments to low income minors who…
The Government has released a draft of proposed amendments that will implement changes to the income tax law affecting consolidated groups. The amendments were announced on 25 November 2011 and relate to the operation of the consolidation tax cost setting rules and the operation of the taxation of financial arrangements (TOFA) rules for consolidated groups.…