Category Archives: Tax Month – January 2014

*SMSF trustees will be required to receive electronic payments by 1 July 2014 (per SuperStream) – ATO to publish a list of service providers in readiness [50]

The ATO has advised that in early 2014 it will publish a list of messaging service providers for the SMSF segment. From 1 July 2014, SMSF trustees must be able to receive electronic messages and payments associated with employer contributions in a format that complies with super data and payment standards. The ATO noted that messaging service…

Div 293 assessments on super concessional contributions (for those with income of over $300k) will issue in February 2014 [49]

The ATO has advised that it will start issuing Div 293 tax notices of assessment for the 2012-13 financial year to individuals from early February 2014. From the 2012-13 income year, a 15% Div 293 tax on concessional contributions applied to those individuals with incomes above $300,000. According to the ATO, to calculate whether an individual has income and…

*SCCASP Holdings atf the H&R Super Fund v FCT – Taxpayer seeks leave from the High Court to argue distribution of capital gain is not ‘special income’ [48]

The High Court will on 14 February 2014 hear the taxpayer’s application for special leave to appeal against the Full Federal Court decision in SCCASP Holdings as trustee for the H&R Super Fund v FCT [2013] FCAFC 45. The Full Federal Court had dismissed the taxpayer’s appeal from a 2012 Federal Court decision and upheld the finding…

*Wooster v Morris – SMSF trustee held personally liable for disputing valid ‘Binding Death Benefit Nomination’ [47]

The Supreme Court of Victoria has upheld the validity of a superannuation binding death benefit nomination (BDBN) and ruled that the surviving trustee of the self-managed superannuation fund (SMSF) was personally liable to pay the death benefit (and the plaintiffs’ costs of the proceedings). Mr and Mrs Morris established an SMSF in August 2005. Mr Morris died…

Re Snugfit Australia Pty Ltd v FCT – a sleep positioning system did ‘modify’ the mattress and was GST-free as a medical aid or appliance [46]

The ATO on Thur 23.1.2014, released Decision Impact Statements on the following case: AAT Case [2013] AATA 802, Re Snugfit Australia Pty Ltd and FCT – The AAT set aside the Commissioner’s decision and held that a supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a…

*GSTD 2014/1 – GST private rulings available as a means of getting the Commissioner’s s105-65 refund decision before the AAT – post Naidoo case [44]

This Determination, released on Wed 22.1.2014, states that taxpayers can object to a private ruling the Commissioner makes on the way in which s 105-65 of Sch 1 to the TAA applies or would apply, but only if the Commissioner has not made an assessment of the net amount for the tax period in which the taxpayer…

CR 2014/6 – GST on charges imposed by NSW Councils for administration, animals, approvals/permits, health, impounding and pest control [45]

The ATO on Wed 22.1.2014, released the following Class Rulings: CR 2014/6: The GST treatment of fees and charges imposed by NSW Councils in relation to matters involving administration, animals, approvals/permits, health, impounding and pest control. It applies from 1 July 2013 to all entities, who entered into the scheme as described during the term of the…

*Re Swanbat Pty Ltd v FCT – Commissioner appeals AAT decision that an assessment to recoup a refund of GST more than 4 years ago was excessive [43]

The Commissioner has appealed to the Federal Court against the decision in AAT Case [2013] AATA 891, Re Swanbat Pty Ltd and FCT. The AAT had set aside the Commissioner’s amended assessment in relation to a BAS for the period 1 April 2008 to 30 June 2008 and held that the taxpayer’s net amount for the quarter was zero.…

*Re Harland as Trustee for the PCS Global Discretionary Trust and FCT – No entitlement to ITCs for trustee of discretionary trust; penalty affirmed [42]

The AAT has disallowed a taxpayer’s claims for input tax credits (ITCs) and also affirmed penalties imposed by the ATO. The taxpayer, as trustee of the PCS Global Discretionary Trust (PCS Global Trust), claimed he was entitled to $5.3m in ITCs for the period 1 January 2012 to 31 March 2012. He claimed the ITCs were claimable on purchases…

ATO to data-match payments from local governments [40]

The Commissioner has gazetted a notice announcing that the ATO will acquire details of entities receiving taxable payments from various local government Councils and Shire authorities throughout NSW, Vic, Qld, WA, SA, Tasmania, and the NT. The data-matching program covers the 2011 to 2014 financial years. The data will be electronically matched with certain ATO…