On 15.4.2016, the ATO issued Practical Compliance Guideline PCG 2016/6 (Determining source of certain hedging gains for the purposes of s770-75). It sets out the ATO’s compliance approach to working out the source of certain hedging gains for the purposes of calculating the foreign income tax offset limit in s 770-75 of the ITAA 1997. The Guidelines apply…
The taxpayers have applied for special leave to appeal to the High Court against the decision in Seymour v FCT [2016] FCAFC 18. The Full Federal Court had by majority (Pagone J dissenting) dismissed a husband and wife taxpayers’ appeal from the 7 April 2015 decision of Buchanan J (in FCT v Seymour [2015] FCA 320) that had set aside an order made by the…
The Commissioner has applied for special leave to appeal to the High Court against the decision in Financial Synergy Holdings Pty Ltd v FCT [2016] FCAFC 31. The Full Federal Court had unanimously allowed the taxpayer’s appeal from the decision of Pagone J at first instance [2015] FCA 53. The taxpayer had to determine the cost base of an…
The ATO released PS LA 2016/1 on Thur 14.4.2016. It applies from that date and provides guidance to ATO staff when they are proposing transfer pricing adjustments, under Subdiv 815B of the ITAA 1997, involving imported purchases with potential customs implications. The adjustments may have been made in an audit, a settlement, where the entity has objected to an amended…
On 12.4.16 the European Commission announced a proposal to build on the Commission’s work to tackle corporate tax avoidance in Europe, estimated to cost EU countries EUR 50-70 billion a year in lost tax revenues. Supplementing other proposals to introduce sharing of information between tax authorities, it would require multinationals operating in the EU with global…
AUSTRAC is an active member of the Serious Financial Crime Taskforce (SFCT), providing actionable financial intelligence and data sharing as well as specialist analytical and intelligence support. The Australian Taxation Office (ATO), as part of the partnership approach embodied by the SFCT, has shared data that they received relating to the ‘Panama Papers’ with AUSTRAC.…
On 13.4.2016, the ATO issued: CR 2016/21 – relating to the The Flinders University Academic Staff Early Retirement Scheme 2016 is an early retirement scheme for the purposes of section 83-180 (para 30) of the Income Tax Assessment Act 1997 (‘ITAA97‘); and CR 2016/22 – relating to the Flinders University Professional Staff Early Retirement Scheme 2016 is…
The ATO released TD 2016/6 on 13.4.2016 – ruling that interest costs incurred by an Australian resident company, in acquiring foreign source dividend income, through a foreign branch, is not deductible under s25-90 of the Income Tax Assessment Act 1997 (‘ITAA97‘). Section 25-90 allows deductions for losses and outgoings that would not, otherwise, be not…
The WA State Administrative Tribunal has ordered a reassessment of duty on mining tenements based on a dutiable value of $1.14bn. On 8 September 2010, the boards of Avoca Resources Limited and Anatolia Minerals Development Limited announced that they had agreed to enter into a scheme of arrangement under which Anatolia would acquire all of the shares…
The AAT has held that it lacked the jurisdiction to review a private ruling as the ruling dealt with a different decision to that sought by the taxpayers. In a private ruling application, the taxpayers had sought from the Commissioner that he “confirm taxpayer is within the limits to claim 6 year exemption rule in…