Category Archives: Tax Month – August 2019

Land Tax Trust Surcharge – Nomination of Principal Place of Residence (PPR) beneficiary and notice of beneficial interests

On 27th August 2019, Pointon Partners, Lawyers, issued the 2nd of their State Taxation Series – Land Tax Trust Surcharge – Nomination of Principal Place of Residence (PPR) beneficiary and notice of beneficial interests. See below for further details. FJM 31.8.19 [Tax Month – August 2019]

Law Council of Australia’s submissions opposing the ATO’s proposal to change the Legal Profession Uniform Law and Rules to make any actual or potential ‘Promoter Penalty’ conduct a ‘show cause event’ threatening the lawyers ‘practising certificate’

On 29 August 2019, the Law Council of Australia (LCA) made submissions opposing the ATO’s  25.6.19 proposal, to change the Legal Profession Uniform Law and General Rules, to require lawyers to report any ‘Promoter Penalty’ conduct, to their local (Vic or NSW) regulator, when applying for, or renewing, a practising certificate and as a reportable…

Tax Haven complications – ‘Panama’ and ‘Paradise’ Papers – CFC, MAAL, DPT, DTA, MLI and Part IVA (as the great John McEnroe used to say: ‘are you serious?’)

The Tax Institute’s weekly email on 30.8.19: TaxVine, Professor Bob Deutsch included his Senior Tax Counsel’s Report, entitled ‘Using tax havens – the not so bad, the bad and the downright ugly!’ And, in a similar vein, see a related Tax Technical article on the ICIJ’s latest revelation: the ‘Mauritius Leaks’. See below for further…

Inquiry into the performance of the Inspector-General of Taxation (IGT) – Law Council of Australia (LCA) Submission to the Senate Committee

The  Taxation Committee of the Business Law Section of the Law Council of Australia (the Committee) made submissions to the Senate Economics Legislation Committee on the performance of the IGT, by way of letter dated 30 August 2019. See below for the terms of reference and the LCa summary of the submissions and the submissions verbatim.…

PCG 2019/D3 – Thin cap: ATO ‘practical compliance guide’ to using the ‘arm’s length debt test’ – what is the ‘low risk’ approach to this high risk Div 820 approach?

On 28.8.19, the ATO has issued Draft Practical Compliance Guideline PCG 2019/D3 to provide detailed guidance and a risk assessment framework on applying the the arm’s length debt test in the thin capitalisation rules. This followed the earlier release of Draft Ruling TR 2019/D2 on this test (titled: Income tax: thin capitalisation – the arm’s length debt test – on 5.4.19).…

Small Business Ombudsman is investigating the Government clawing back millions in R&D claims from small business (ATO offends Kate Carnell again)

On 28 August 2019, the Australian Small Business and Family Enterprise Ombudsman: Kate Carnell put out a media release saying she is concerned by reports the government (the ATO) has clawed back $200 million, in the 2018 financial year, from businesses who have claimed the R&D Tax Incentive and has been investigating the impact of…

TD 2019/D5 – Early stage innovation companies – tax offset and CGT exemption: administration of ‘early stage’ $1m expenses incurred under early stage test

On Wed 28.8.2019, the ATO issued Draft Taxation Determination TD 2019/D5 on what expenses are taken into account in determining whether a company meets the requirements of an early stage innovation company (ESIC). See below for further detail about the draft determination. FJM 28.8.19 [Tax Month – August 2019]

Ariss v CofT – Personal services income: consultant’s attempt to split income with spouse fails

In this case, all the income derived from a consultant’s skills, but split between the consultant and his wife, via a third party trust arrangement, was assessable to the consultant, as his ‘ordinary income’ and as ‘personal services income’. See below for further detail about the case and a link to the report. FJM 28.8.19…

Burton v CofT – Only 50% of US CGT allowed as foreign tax offset as only 50% of Australian capital gain assessable & a majority said the DTA argument failed – appeal dismissed

On appeal, the Full Federal Court has upheld (by majority) that a decision that a taxpayer was not entitled to a full foreign income tax offset (FITO) for US tax paid on the sale of investments, as only half the capital gain had been included in his assessable income although there was an ancillary DTA…

Wilkins v ASIC – SMSF loans applications in wrong name: mortgage broker’s ban reduced by AAT from 3 years to 18 months as not dishonest

ASIC banned a NSW Mortgage broker from providing financial services – as a result of applying for 60 SMSF loans in the wrong name. The ban was for 3 years but the AAT reduced that to 18 months. See below for further details about the wrongdoing and the result. FJM 28.8.19 [Tax Month – August…