EU: announces new VAT rules for e-commerce – on-stop shop registration and ‘large online market places’ liable

Key Tax News – On 11 December 2018, the European Commission announced new details for a coordinated, EU wide, VAT system for sale of goods by ‘large online market places’, into the EU, using a single ‘one-stop-shop’ approach, to registering, for sales into any and all EU member states (based on the e-services’ model already in…

Division 7A reform – quit the ‘band-aid’ approach – and go ‘back to the future’ (the 2014 future)

Key News Summary – there is growing momentum to leave the October 2018 Consultation Paper approach, to reforming ‘Division 7A’, in favour of something more sensible – including reverting to the approach suggested by the Board of Taxation, in its 2014 Report.   The Tax Institute said that in their opinion, the Government’s approach in…

LCR 2018/D10 – Super funds: proposed extension of NALI provisions to ‘non-arm’s length expenditure’

Key News Summary – The Commissioner has issued a draft Law Companion Ruling supporting the still unlegislated ‘non-arm’s length expenditure’ (NALI) extension to the NALI provisions for superannuation funds   On wed 19.12.2018, the ATO issued Draft Law Companion Ruling LCR 2018/D10, which discusses the proposed amendments to the non-arm’s length income (NALI) rules where a…

LCR 2018/D9 & PCG 2018/D9 – Hybrid mismatch rules: ATO guidance on structured arrangements

Key News Summary – to assist with the coming anti-hybrid mismatch rules, the Commissioner has issued Draft Law Companion Ruling LCR 2018/D9 and Draft Practical Compliance Guideline PCG 2018/D9.   On Wed 19.12.2018, the ATO issued 2 products – Draft Law Companion Ruling LCR 2018/D9 and Draft Practical Compliance Guideline PCG 2018/D9 – on the recently…

DCT v Pedley (No 2) – DPN liability stands – instalments not applied to company debts with ‘parallel’ liability for director

Key News Summary – a director was held liable for almost $160,000 of a company’s PAYGw liabilities, under the DPN provisions, because the company’s instalment payments were not made under any agreement to pay the company’s parallel (DPN) liabilities first, and so were allocated to liabilities to the ATO on the PS LA 2011/20 basis…

Labor would give employees a right to chase their own super and increase ‘fines’ for under-reporting to the ATO

Key News Summary – a Labor government would change the laws to give employees a legal right to collect their own superannuation and the Commonwealth the right to impose fines of 10% and 300% of un/under paid superannuation contributions, if there are misleading statements or under-reporting to the ATO (respectively)   On 16.12.18, the Shadow…

Redundancy and early retirement scheme payments – Change to extend the current 65 age cap to match Age Pension eligibility

Key News Summary – the Treasurer announced an extension of the age, up to which an individual can get the tax-free portion of ‘genuine redundancy payments’ and ‘early retirement scheme’ payments. The age will be extended to match the increasing age threshold for the Age Pension.   On 15.12.18, the Treasurer announced a change to…