SMSF Association’s Statement regarding disciplinary proceedings against financial planner: Sam Henderson for potential $500k loss from his advice – exposed in Banking Royal Commission

Tax Month - April 2018, Tax Month - May 2018

On 26.4.18, the SMSF Association issued a statement that it has initiated disciplinary proceedings against an Associate member in response to conduct revealed at the Financial Services Royal Commission (FSRC). The SMSF Association said it was disappointed by the alleged conduct attributed to the financial planner, Sam Maxwell Henderson, and Henderson Maxwell Proprietary Limited, as…

ASIC updates guidance on AFS licensing requirements for accountants (Tax & BAS agents) who give advice about SMSFs (Self-Managed Superannuation Funds)

Tax Month - April 2018

On 26.4.18, Australian Securities and Investments Commission (ASIC) updated its guidance for accountants who provide services on self-managed superannuation funds (SMSFs) to cover the exemption from the Australian Financial Services (AFS) licensing requirements for Tax and BAS agents. The guidance was developed in conjunction with the Tax Practitioners Board and is being released as part…

ATO’s Superannuation Clearing House has experienced delays in processing contributions – SG and Fair Work assurance to affected employers

Tax Month - April 2018

The ATO identified some issues with its Superannuation Clearing House, which impacted the processing and crediting of payments to some employee’s super fund accounts, which was rectified by 2 May 2018. Reassurance in relation to super guarantee obligations The ATO has confirmed that employers will be treated as meeting their SGC contribution deadlines, for employee…

NSW land tax: Moore v Chief Commissioner of State Revenue – Lot 2 was exempt from Land Tax, its dominant use was primary production by servicing commercial cultivation on the more dominant Lot 1

Tax Month - April 2018

The NSW Civil and Administrative Tribunal has held that, for land tax purposes, the dominant use of land used to grow sprouts was for primary production. The land in question effectively consisted of Lot 1 (about 500m2) and Lot 2 (about 620m2). Lot 2 contained a warehouse/shed used to store seeds, prepare seeds by washing…

Stojic v DCT – director fails in action to ‘judicially review’ the Commissioner’s decision to refuse payment (of DPN liabilities) by instalments – no need to give director notice of a need for security

Tax Month - April 2018

The Federal Court has dismissed a director’s application, to judicially review the Commissioner’s decision, to refuse payment of his DPN liabilities, by instalments. The Commissioner has power to accept instalment arrangements, under s255-15(1) of Sch 1 to the Taxation Administration Act 1953 (TAA1). The Commissioner refused his request, on the basis that his proposal did not offer…

CofT v International Indigenous Football Foundation Australia Pty Ltd – ‘promotor penalties’ for R&D ‘tax exploitation schemes’ – company and director ‘contravened’ and $4.25m in civil penalties (interesting circumstances)

Tax Month - April 2018

In this case, the Court found the respondents had contravened the ‘promoter penalties’ provisions in Div 290 of the  s290-50 of the Taxation Administration Act 1953, Schedule 1 (TAA1) in helping clients obtain R&D tax offsets (under Division 355 of the Income Tax Assessment Act 1997 (ITAA97). I should say that it was not, an…

Stapled structures – Integrity measures package announced – with a detailed document

Tax Month - April 2018

On 27 March 2018 the Government announced a package of so called ‘integrity’ measures, for stapled structures, and other associated issues. The Commissioner and the Government like to help justify these measures by saying that they follows consultation, by Treasury over the past year. That doesn’t necessarily mean that the changes are good or even ameliorated.…

MMFT v CofT – Taxpayer fails on 3 default assessments & the 75% ‘failure to lodge’ penalty – PSI, PAYGw, Rental Losses, Motor Vehicle deductions, flight deductions, phone/internet

Tax Month - April 2018

The AAT has held that a taxpayer had not discharged his onus of proof to demonstrate that default assessments for the 2008, 2009 and 2010 income years were excessive and the 75% penalties, for failure to lodge the returns, should not be remitted. The Taxpayer did not lodge income tax returns for the 2008, 2009…

SMSF auditor registration fee – proposed 18 fold increase, from 1 July 2018, as part of the AISC ‘fee for service’ changes

Tax Month - April 2018

Treasury consultation, on draft legislation, for ASIC to impose ‘fees-for-service’, commenced 11 April 2018 and runs to 1 May. There are a number of fees that affect superannuation auditors. SMSF  auditors –  The fee for applying for registration (as ASIC approved) is to increase from $107 to $1,927 from 1 July 2018 – an 18 fold increase (but…