Category Archives: Tax Month – April 2015

*‘Debt – Equity’ report released by Minister and draft legislation foreshadowed to implement recommendations to reduce uncertainty and cost [46]

The Assistant Treasurer, on Thur 2.4.2015, released the Board of Taxation’s review into aspects of the tax integrity rules that distinguish debt finance from equity. Specifically, the report recommends reforms to the related scheme provisions and the equity override provision in the tax rules for debt and equity. Mr Frydenberg said the Board of Taxation…

Ward’s case – ATO’s view of AAT’s approach to reviewing ‘excess super contributions tax assessments’ [45]

The ATO has issued a Decision Impact Statement on the decision in Re Ward and FCT [2015] AATA 138. In that case, the AAT ruled that it had jurisdiction to review a decision by the Commissioner not to make a determination to disregard or reallocate excess superannuation contributions after finding that s 292-465(9)(a) of the ITAA…

Trustee for the Payne Superannuation Fund v FC of T – ‘net exempt income’ losses cannot be carried forward to reduce future ‘net exempt income’ [44]

In a case involving the calculation of losses carried forward under Subdiv 36-A of ITAA 1997, the AAT has confirmed that a net exempt loss of a year of income cannot be carried forward to a future year but rather is lost. Under s 36-10 of ITAA 1997, a tax loss arises in any income…

Temporary Residents – draft legislation to exempt employers having to offer choice of funds for superannuation contributions [43]

Treasury has released draft legislation to give effect to the government’s announcement to remove the obligation for employers to offer a choice of superannuation fund to temporary residents, or when superannuation funds merge, from 1 July 2015. In particular, employers will not be required to give employees a standard choice form if they hold a…

Australia Pacific LNG Pty Ltd & Ors v Building & Construction Industry (Portable Long Service leave) Authority – levy on GST-inclusive cost [42]

In a February 2014 decision in Australia Pacific Pty Ltd & Ors v Building and Construction Industry Authority [2014] QMC 004, the Magistrates Court of Qld held that GST on domestic and imported goods used in a coal seam gas project in Qld is a component of the cost of building and construction work. This meant the…

*Re Andrew Garrett in his capacity as an Authorised Officer of various trusts – no standing as holder of trustee’s power of attorney – breach of Corps Act [41]

The AAT has held that an individual was not a person who was entitled to apply for review of reviewable objection decisions made by the Commissioner. The Tribunal also refused the individual’s request to extend the time within which to lodge an application for review of the objection decisions. The individual, in his own name…

GST to cover intangible supplies by non-residents; $1,000 threshold may also be lowered [40]

Mr Hockey said: ‘The [relevant] integrity measures were in relation to what is emerging as an OECD consensus, that GST should be charged at the source [of the payment for the service], so a company providing intangible services into Australia, such as media services or so on, wherever they are located they should charge GST…

Federal Taxation Statistics 2012-13 [39]

The ATO on Wed 29.4.2015 released Taxation Statistics 2012-13 which present an overview of 2013 income tax returns for individuals, companies, superannuation funds, partnerships and trusts. The statistics also cover other aspects of the taxation system such as GST, FBT and excise, along with the superannuation system, in relation to the 2013-14 financial year. Highlights from…

Choose reporting options for PAYGi and GSTi – election of method must be made in the first quarter [38]

PAYG Instalments – Your clients can generally choose between two options for reporting and paying their pay as you go (PAYG) instalment obligations for the income year. They can either: pay the pre-printed instalment amount, or calculate their PAYG instalment using the rate option. In Quarter 1, if an activity statement due date has passed…

Tips for trustees of death benefits [37]

On a trust return, when a death benefit employment termination payment (ETP) and/or a superannuation lump sum is paid to a client’s deceased estate: do not record these amounts as distributed to beneficiaries of the trust; include the assessable amounts at item 54 Statement of distribution at ‘Income to which no beneficiary is presently entitled’.…