Category Archives: Tax Month – April 2018

Tax Month – April 2018

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – April 2018 Developments – This is a collection of developments in Australian tax law and practice that occurred in April 2018 which aims to be relevant to tax practitioners.[i] Compiled By F…

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

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)

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

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

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

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…

DCT v Josway Hospitality Pty Ltd – Winding up order set aside because of s160(1) ‘doubt’ that the posted ‘statutory demand’ arrived – accountant’s affidavit pivotal

The Federal Court has set aside an order for winding up of a company (due to unpaid tax debts) on the basis that the evidence presented created a reasonable doubt (for the purposes of s160 of the Evidence Act 1995) that the posted Statutory Demand arrived in the post. The facts were these: On 4 October…

Four Corners and Fairfax story of various alleged ATO abuses – one being an ATO whistle blower, his treatment, whether the new ‘whistleblower’ Bill would have helped

You might have missed it, but the ABC ran an unfavourable story, about the ATO, in its ‘Four Corners’ program (aired Mon 9.4.18) and a related article on its website. There was more than one matter reported on, but the gist of the story is that the ATO can be heavy handed with small business,…

Remedial Power – Determination extends the Small Business Restructure Roll-over ‘direct tax’ relief to depreciating assets – so they could not be a deemed dividend (for instance)

The Commissioner has exercised his ‘Remedial Power’, in s370-5 of the TAA1, by making the Taxation Administration (Remedial Power – Small Business Restructure Roll-over)  Determination 2017. This is to make the Small Business Restructure Roll-over (Restructure Rollover) provisions work better, with respect to depreciating assets. The ‘Remedial Power’ allows the Commissioner to modify the tax…

PSJF v CofT – Deductions for $37k of employee photographer’s work-related expenses denied in the absence of requisite substantiation and doubts about underlying deductibility

The AAT has upheld the Commissioner’s objection decision, which denied a photographer/taxpayer work-related expenses claimed by a photographer on the basis that he failed to discharge his onus of establishing that the claimed amounts were deductible. The taxpayer claimed travel expenses and other expenses (eg stationary, mobile phone, protective gear, internet, computer hardware, camera, depreciation)…