Category Archives: Tax Month – April 2016

TA 2016/1 – 4: Warnings about revaluing internally generated assets to pass ‘thin capitalisation’ tests; interim arrangements to avoid the MAAL; related party currency swap fees & havens in leases of movable assets

On 26.4.2016, the ATO issues 4 Taxpayer Alerts dealing with concerns it has about emerging profit-shifting arrangements that may lead to tax avoidance. Deputy Commissioner, Public Groups, Jeremy Hirschhorn said “Taxpayer alerts … are an effective tool to stop the marketing, sale and implementation of schemes, support voluntary disclosures from those who may be involved in these schemes,…

Multinational Tax Avoidance – Part 2 of the Senate Economics References Committee report: ‘Gaming the System’

On 22.4.16, the Senate Economics References Committee tabled Part 2 of it’s tax avoidance report – Part 2: Gaming the System. The following extracts give insight into the thrust of the report. [APH website] [LTN 76, 22/4/16] The first extract gives the background to Part 2 of its report. Chapter 1 – Background First report on…

Government plans – Public register of beneficial ownership of ‘shell’ (??) companies and other initiatives – Asst. Treasurer interviewed by the ‘Guardian’

The Assistant Treasurer, Kelly O’Dwyer, told The Guardian about various Government initiatives, including a proposal to create a ‘public register of the beneficial owners of shell companies”. [LTN 76, 22/4/16] Guardian report The Turnbull government will create a public register revealing the identities of the beneficial owners of shell companies in an effort to quell mounting public…

Meaning of ‘Public Benevolent Institution’ (PBI) – ACNC’s draft ‘Interpretation Statement’

The Australian Charities and Not-for-profits Commission (ACNC) has released for comment a draft Commissioner’s Interpretation Statement on the meaning and scope of the charity subtype of “public benevolent institutions” for ACNC purposes. The following is an extract of some of the key portions of the Statement. [ACNC – Public consultation and Comment; Download Statement] [LTN 75, 21/4/16] Extract…

CR 2016/23 – ordinary shareholders of Caltex Australia Ltd who disposed of their ordinary shares under the off-market share buyback announced on 23 February 2016

On 20.4.16, the ATO issued Class Ruling CR 2016/23 (off-market share buy-back: Caltex Australia Ltd) which applies to ordinary shareholders of Caltex Australia Ltd who disposed of their ordinary shares under the off-market share buyback announced on 23 February 2016. It applies form 1 July 2015 to 30 June 2016. [LTN 74, 20/4/16]

IMF, World Bank, UN, OECD form new group to stop tax erosion

The International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG) announced today the details of their joint effort to intensify their cooperation on tax issues: the Platform for Collaboration on Tax. The Platform will not only formalize regular discussions between the four…

Inspector General’s further submission on the scrutiny of the ATO – being conducted by the House of Representatives Standing Committee on Tax and Revenue

On 16 April 2016, the Inspector General of Taxation (IGT) lodged a further Submission to to the House of Representatives Standing Committee on Tax and Revenue’s (Committee) Inquiry into the External Scrutiny of the Australian Taxation Office (Inquiry). This was to supplement its initial Submission made in March 2016 after having the benefit of seeing the other submissions…

Oleshko and Tax Practitioners Board – Registration as tax agent denied – lack of relevant experience

The AAT has affirmed a decision of the Tax Practitioners Board to refuse an application for registration as a tax agent. The Board had rejected the person’s application for registration as a tax agent because it was not satisfied that she met the eligibility requirements for registration under s20-5(1) of the Tax Agent Services Act 2009 (TASA).…

Davan Developments Pty Ltd v HLB Mann Judd (SE Qld) Pty Ltd – taxpayer unsuccessful in obtaining damages for alleged negligence by its accountants

A company taxpayer failed to get an order for damages, in negligence (and cognate actions) against its tax agents in the Qld Court of Appeal. In November 2007, the appellant company transferred land for a consideration of $1.6m. For that transaction, the ATO assessed the company as liable to pay GST, income tax and penalties on each of…

2016 Measures No 1 Regulation 2016 – amends GST Regs to treat foreign offered bank accounts and superannuation interests as ‘financial supplies’ and the SIS Regs to allow contributions from ‘earn-outs’

The Tax and Superannuation Laws Amendment (2016 Measures No 1) Regulation 2016 was registered on 15.4.2016. It makes consequential amendments the GST regs and the SIS regs to account for changes to the tax law to be made by the Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 and already made the Tax and Superannuation Laws Amendment (2015…