Commissioner of Taxation v BHP Billiton Limited – BHP entities held to be ‘associates’ of Billiton (UK) entities, under their ‘dual-listed’ structure – for CFC purposes

Tax Month - January to April 2019

On 29.1.19, the Full Federal Court allowed the Commissioner’s appeal and found that BHP on the issue of whether it’s ‘dual-listed’ arrangements, with the UK Billiton company, made BHP subsidiaries, ‘associates’ of the Billiton entities, for Controlled Foreign Corporations (CFC) purposes. At issue was whether BHP had to return (under the CFC provisions) its share…

University ‘Tax Clinics’ – Labor would fund Melbourne Uni’s clinic, allow them to register as tax agents and to get DGR status

Tax Month - January to April 2019

On 15.4.19, Shadow Assistant Treasurer: Mr Andrew Leigh announced that a Labor government would provide the University of Melbourne’s ‘Tax Clinic’ $150,000 annually as part their policy to have 10 tax clinics around Australia, facilitate their registration as a tax agent and also give them Deductible Gift Recipient status. See below for the entire media…

Glencore’s case in the High Court, seeking orders that the ATO return and not use ‘privileged’ documents stolen the Paradise Papers leak – decision reserved after hearing

Tax Month - January to April 2019

On 17.4.19, the High Court heard the case brought by Glencore International seeking orders that the ATO deliver up documents it had obtained, relating to Glencore, following the 2017 leak of the so called ‘Paradise Papers’ (see related Tax Technical article). They also sought an injunction restraining the ATO from using those documents. The High…

Tax Institute’s submission to the Review of the TPB & TASA – suggesting matters to go into their ‘Discussion Paper’ (interface with legal regulation mentioned)

Tax Month - January to April 2019

On 18 April 2019, The Tax Institute (Institute) made a submission to the Independent Review of the Tax Practices Board (Board) and its enabling legislation: Tax Agents Services Act 2009 (TASA). See this related Tax Technical article, covering this review. I made a submission to this review, as did the Law Council of Australia and…

MIT ‘cross-staple’ withholding, thin capitalisation ‘double gearing’, foreign super withholding exemption and sovereign immunity Acts passed 5 April 2019

Tax Month - January to April 2019

The Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019; Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill 2018 and Income Tax Rates Amendment (Sovereign Entities) Bill 2018  were passed into law on 5 April 2019, when they received Royal Assent as Acts No. 34,…

Hill v Tax Practitioners Board – tax agent deregistered without a client complaint and refused a stay of the order (read why)

Tax Month - January to April 2019

Tax agent Richard Hill applied for a stay of the Tax Practitioners Board’s decision to terminate his registration, for failings in the administration of his own affairs (even though there were no client complaints). See below for further detail about why the TPB took this action and why the AAT refused to grant the stay.…

NZ: Recent anti-BEPS legislation – ‘Final reports’ published by Inland Revenue

Tax Month - January to April 2019

The NZ Inland Revenue has published final versions of its BEPS special reports on the following rules enacted by the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (NZ), covering: large multinational groups; transfer pricing rules; permanent establishment; permanent establishment and hybrid mismatch rule for non-resident withholding tax; hybrid mismatch rules (general) and interest…