In figures released Tue 11.12.2012, the ATO said that, in the quarter from 1 July 2012 to 30 September 2012, it had prosecuted 465 individuals and companies for tax and superannuation criminal offences resulting in over $1.56m in fines and penalties. Of the prosecutions, the ATO said: 13 people were convicted of serious tax and superannuation related criminal offences,…
The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 3rd quarter of the 2012-13 financial year (ie 1 January 2013 to 31 March 2013) are as follows: GIC annual rate is 10.24%; GIC daily compounding rate is 0.02805479%; SIC annual rate is 6.24%; and SIC daily compounding rate is…
The ATO, Wed 19.12.2012, issued the following Class Rulings: CR 2012/118: Early retirement scheme – University of Tasmania. It applies from 19 December 2012 to 31 December 2013. Broadly, the Ruling states that the early retirement scheme to be implemented by the University of Tasmania is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. CR…
The ATO on Wed 5.12.2012 issued the following Class Rulings: CR 2012/110: R&D concession: membership funding for the ACA Low Emissions Technologies Program. It applies from 1 July 2007 to 30 June 2011. Among other things, the Ruling states that to the extent contributions made in an income year are $1,000 or more and are incurred directly in respect of…
According to this Draft TD, released on Wed 19.12.2012, a consolidated special purpose financial report (SPFS) of a head company of a tax consolidated group cannot satisfy clause 1.1 of Sch 2 to the Income Tax Assessment Regulations 1997where transactions within the same class are translated using inconsistent methodologies. DATE OF EFFECT: When the final Determination…
This Draft TD, issued on Wed 19.12.2012, states that subs 820-39(3) of the ITAA 1997 only applies to special purpose entities (SPEs) that have been established for the purpose of carrying on securitisation activity. If an SPE has been established for the purpose of carrying on activities that are not necessary for, or incidental to, securitisation…
The ATO on Thur 20.12.2012, released 2 Decision Impact Statements on the following cases: [2012] FCAFC 109 – the Full Federal Court had upheld a decision that an Mitsui & Co (Australia) Ltd v FCTauthorisation to explore for petroleum and an authorisation to recover petroleum, conferred as a consequence of the grant of a production…
The ATO on Tue 4.12.2012, issued a Decision Impact Statement on the decision in Australia and New Zealand Banking Group Limited v Konza [2012] FCAFC 127. In that case, the Full Federal Court unanimously confirmed that notices issued by the ATO under s 264 of the ITAA 1936 to Australia and New Zealand Banking Group Limited…
In an action for damages against a financial adviser for misleading and deceptive conduct in relation to advice concerning investments in a managed agricultural investment scheme, the NSW Court of Appeal has held that any damages awarded to the appellants should be “grossed-up” for tax on the basis that the damages would be taxable income…
The NSW Court of Appeal has unanimously allowed a taxpayer’s appeal from a decision of the District Court in which judgment was entered for the Deputy Commissioner against the taxpayer for a Running Balance Account (RBA) debit of some $500,000, and has ordered a new trial in respect of the matter. Before the Court of…