ATO suspends its audit ‘guidance’ on professional firm structures that are ‘too effective’ in income splitting – partnerships of discretionary trusts and Everett assignments

Tax Month - December 2017

On 14 December 2017, the ATO announced that it was suspending its 2015 ‘Assessing the Risk: Allocation of profits within professional firms guidelines’ and ‘Everett Assignment web material’ – saying that it was to be reviewed in 2017. It says that: “In reviewing the guidelines we have become aware they are being misinterpreted in relation to arrangements that go…

Lewski v. Commissioner of Taxation – ‘Decision Impact Statement’ following beneficiary escaping amended assessments

Tax Month - December 2017

On 14 December 2017, the Commissioner issued the following Decision Impact Statement about the Full Federal Court decision of Lewski v Commissioner of Taxation [2017] FCAFC 145. This is an important decision on both when an amount is ‘incurred’, for general deduction purposes, and also on the effect of making income distribution resolutions on an…

Mercer Superannuation (Australia) Limited v Billinghurst – Trustee’s duty is to member (not retiring employer) – ‘transfer value’ of of defined pension benefit as ‘indexed’ – SCT decision upheld

Tax Month - December 2017

The Full Federal Court has dismissed an appeal by a trustee of a superannuation fund in relation to the lump sum equivalent value of a lifetime pension to be paid to a defined benefit member upon the termination of an employer-sponsored superannuation plan. The respondent (Mr Billinghurst) had commenced receiving a lifetime pension of $98,780pa…

DCT v Arico (No 2) – Victorian Supreme Court refused stay of collection proceedings for $2.1m in unpaid tax and refused to vary freezing orders to allow borrowings for legal fees (not full or frank disclosure about assets)

Tax Month - December 2017

In a lengthy decision handed down on Tue 12.12.2017, the Victorian Supreme Court has refused husband and wife taxpayers an application to stay judgment against them for outstanding tax assessments totalling over $2 million. The Deputy Commissioner of Taxation (DCT) sought judgment against the first defendant in the sum of $1.061 million and against the second…

GST-free status of certain tertiary courses continued by Minister making a 2017 under the definition of ‘education course’ in the GST Act

Tax Month - December 2017

The Minister for Social Services registered a A New Tax System (Goods and Services Tax) (Tertiary Courses) Determination 2017 on Mon 11.12.2017 on the Federal Register of Legislation. Section 38‑85 of the GST Act provides that the supply of an education course and administrative services directly related to the supply of such a course (if they are supplied…

SA: Foreign Investor Surcharge (on transfer duty) – increased from 4% to 7% from 1 January 2018

Tax Month - December 2017

The Stamp Duties (Foreign Ownership Surcharge) Amendment Bill 2017 has now passed all stages of the SA Parliament without amendment and awaits Royal Assent. The Bill amends the Stamp Duties Act 1923 (SA) to introduce the Foreign Investor Surcharge, which was originally included in the defeated Budget Measures Bill 2017, and increase it from 4%…

Vic: SRO explains the ‘Vacant Residential Land Tax’ – noting the 15 January 2018 deadline to report land vacant for more than 6 months in calendar 2017

Tax Month - December 2017

The Victorian State Revenue Office (SRO) has reminded people that homes left unoccupied for more than 6 months in 2017, which are located in 16 of Melbourne’s inner and middle council areas (see FAQ), may attract vacant residential land tax. Owners of a property in one of the affected council areas that was unoccupied for 6 months…

Carr v CofT – Federal Court refuses to remit the AAT decision on Default Assessments back to the AAT (taxpayer hopelessly unprepared in the AAT)

Tax Month - December 2017, Uncategorized

The Federal Court has dismissed a taxpayer’s claim to have a default assessment matter remitted to the AAT for rehearing. In April 2012, the Commissioner issued default assessments under s167 of the ITAA 1936 to the taxpayer based on his failure to lodge returns in respect of the 2003, 2004, 2005 and 2006 income years. In total,…

Searching for edited versions of ‘private binding rulings’ – ATO explains and consults on proposed changes

Tax Month - December 2017

On 11 December 2017, the ATO included the following guidance, on its website. We’re changing where we publish edited versions Edited versions of written binding advice are now available on the ATO legal database. We’re consulting on the relocation – you can provide your feedback by visiting our Public advice and guidance communityExternal Link on…