Australian Residents, Foreign Trusts and Foreign Funds – The New Black! – covering the Australian tax implications of Australian individuals being trustees or beneficiaries of foreign trusts

The Tax Institute conducted its 7th Annual Victorian Tax Forum, in Melbourne over 17 & 18 October 2019, and Mr Neil Brydges of Melbourne legal firm: Sladen Legal, delivered a paper entitled: ‘Australian Residents, Foreign Trusts and Foreign Funds – The New Black! ‘ This is an important paper covering the Australian tax implications for Australian taxpayers becoming…

APRA’s ‘heatmap’ data on MySuper products – AFR article shows the best and the worst (nowhere to hide for dud super funds)

On 10 December 2019 (the same day as APRA released its ‘HotSpot’ material for MySuper products) the Australian Financial Review published an article relating to this ‘HotSpot’ material), written by Joanna Mather and Aleks Vickovich titled: ‘Nowhere to hide for dud super funds’. This is revealing material. See below for the article. [Tax Month –…

Corporate tax residency review: second Board of Taxation consultation paper – consulting on 2 main (remaining) options – ‘incorporation only’ test and a modified ‘central management and control’ test

On 6.12.19, the Board of Taxation has released a second consultation paper, canvassing the ‘reform options’ as part of its review of the operation of Australia’s corporate tax residency rules. It has also called for submissions by 31 January 2020. See below for the ‘Reform Options’ consultation paper and extracts from it. [Tax Month – December…

APRA released ‘heatmap’ for MySuper products – showing relative: investment performance; fees and costs; and sustainability (it says a ‘game changer’)

On Tue 10.12.2019, APRA released it first Heatmap for MySuper products – using a graduating colour scheme to provide like-for-like comparisons across 3 areas of (i) investment performance; (ii) fees and costs; and (iii) sustainability of member outcomes. It has also contacted the trustees of the worst performing MySuper products and asked them to provide or update…

CofT v Pavihi – Promoter of schemes to transfer super to SMSF’s – subject to $200,000 civil penalty and 7 year ban from being involved in establishing SMSFs

The Federal Court has ordered a promoter of schemes that facilitated the illegal early release of super funds to pay a civil penalty of $220,000 and further restrained her for 7 years from being involved in the establishment of SMSFs. See the related Tax Technical article, from 2018, where the Commissioner obtained an interim injunction.…

Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 introduced – increase $100m threshold to $150m; cap refunds to $4m pa; extend GAAR to R&D offsets and allow Innovation Board to issue binding rulings

On 5.12.19, the Government introduced the Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019 to ‘better target the Research and Development Tax Incentive (R&DTI) and to ensure its ongoing sustainability’ (as the Ministers said in their joint press release). This was first announced in the 2018-19 Budget. See below for the Treasurer’s Media Release and…

Treasury Laws Amendment (2019 Measures No 3) Bill 2019 – introduced proposing changes to concessions for ‘testamentary trusts’, FBT definition to include ‘Uber’ etc, company loss recoupment rules, small business restructures and various superannuation changes

On Thursday 5 December 2019, the Government introduced the Treasury Laws Amendment (2019 Measures No 3) Bill 2019 into the House of Representatives – proposing various amendments – many of which were previously flagged.

See below for a summary of the measures included in this Bill.

[Tax Month – December 2019]

GSJW v CofT – AAT gives the taxpayer a rare win, ‘releasing’ the taxpayer from $900k of GIC on ‘serious hardship’ grounds (leaving only $40k of ‘primary tax’)

A taxpayer has been able to secure partial release, from his tax debt, based on suffering ‘serious hardship’, if required to pay $949,365 in total tax related liabilities (about $910k of GIC or General Interest Charge and about $40k in primary tax). This matter came to the AAT, because the Commissioner had refused to exercise…

Australia’s tax take is second-highest in world – that is taxes on income and profits as a percentage of total taxes – AFR article shows OECD rankings

On Thursday 5 December 2019, the Australian Financial Review published an article by one of its Senior Writers: John Kehoe, entitled: Australia’s tax take is second-highest in world. Yes, we are second only to Denmark, due to our reliance on direct income taxes.

See below for article.

[Tax Month – December 2019]

High Court torpedoes class actions – holding that existing laws do not support Courts making ‘class funding orders’

On 4 December 2019, the Australian Financial Review published an article by its Legal Affairs Editor: Michael Pelly, entitled: High Court torpedoes class actions. This was the same day, as the High Court struck down two class funding orders and was about that case – see related Tax Technical article. See below, for the article. [Tax Month…