Category Archives: Tax Month – December 2013

*Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT – Consolidation: joining entity an associate before joining time – no depreciation deduction for pipeline [15]

The Federal Court has dismissed a taxpayer’s appeal from an adverse private ruling concerning the issue of whether the conditions for the exception provided in s 705-47(5) of the ITAA 1997 (dealing with the consolidation tax cost setting amount for assets where entities become subsidiary members of consolidated groups) were satisfied for the period 1 July 2011 to…

*Seller & Anor v FCT – Orders in Tax Appeals extend time for delivery of evidence until after the criminal trial or further order, etc. [14]

The Federal Court has varied interlocutory orders made to the effect that the time for filing the applicants’ affidavit evidence in their tax appeals be extended until 28 days after the conclusion of the criminal trial or further order. The Court ordered that interim suppression orders made under s 37AI of the Federal Court of Australia…

*Ultra Thoroughbred Racing Pty Ltd v FCT – Garnishee notice issued in respect of horse racing prize moneys set aside [13]

The Federal Court has upheld the action of the applicant, “Ultra Thoroughbred Racing Pty Ltd”, to prevent Racing Victoria Limited from paying money to the Commissioner under a garnishee order against prize money of some id=”mce_marker”m won by a horse in the Cox Plate and the Caulfield Guineas. The Commissioner issued the garnishee notice to…

MYEFO: $47bn deficit in 2013-14; tax receipts down by $37bn over forward estimates [12]

The Mid-Year Economic and Fiscal Outlook (MYEFO), released by the Treasurer on Tue 17.12.2013, forecasts a $47bn deficit in 2013-14, and id=”mce_marker”23bn worth of cumulative deficits over the forward estimates. Mr Hockey said the budget position since the Pre-Election Economic and Fiscal Outlook, released on 13 August 2013, has deteriorated by $68bn over the forward estimates. The…

DGR status for Prince’s Charities Australia [11]

In the Mid-Year Economic and Fiscal Outlook 2013-14, the Government announced that Prince’s Charities Australia will be able to accept tax deductible donations from 1 January 2014. Subject to an amendment to the ITAA 1997 being passed by the Parliament to specifically name the Prince’s Charities Australia as a DGR, Australian taxpayers that wish to support the…

*Thin cap arm’s length debt test: Tax Board releases discussion paper [10]

The Chair of the Board of Taxation, Mrs Teresa Dyson, on Mon 16.12.2013 announced that the Board had released a discussion paper and was inviting written submissions to assist in its Review of the Thin Capitalisation Arm’s Length Debt Test in Div 820 of the ITAA 1997. Further information is on the Board’s website. The review…

*Australia concludes Free Trade Agreement with South Korea [9]

Trade Minister Andrew Robb on Thur 5.12.2013, announced that Australia has concluded negotiations for a Free Trade Agreement (FTA) with the Republic of Korea, Australia’s 3rd-largest goods export market and 4th-largest trading partner. As a result of the Agreement, the Minister said tariffs will be eliminated on Australia’s major exports to South Korea and there…

Review of Anti-Money Laundering laws announced [8]

The Federal Minister for Justice, Michael Keenan, Wed 4.12.2013 announced a review of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. Mr Keenan said that transaction information provided under AML/CTF laws is vital for following the money trail to crack down on serious and organised crime groups, such as Outlaw Motorcycle Gangs, profiting from illegal activities.…

*Greenwood Freehills’ Andrew Mills appointed a new Second Commissioner of Taxation to replace Mr Bruce Quigley who resigned on 4.12.13 [7]

The Assistant Treasurer has announced the appointment of Mr Andrew Mills as a full-time Second Commissioner of Taxation to the ATO for a 7-year period. Mr Mills is currently a director with specialist tax advisory firm Greenwoods & Freehills and is a former president of The Tax Institute. He has extensive knowledge and experience in…

*Unlegislated measures: Govt decides that 16 will go ahead, but 48 will not proceed [6]

On Saturday, 14 December 2013, the Assistant Treasurer announced the outcome of consultations over the remainder of the 92 announced but unlegislated tax and superannuation measures. The Government previously announced that 18 measures would proceed, 3 would be amended and 7 would not go ahead including FBT changes re cars and the cap on self-education expenses. Senator…