The CPI indexation factor, which is used for FBT purposes concerning remote area benefits (under ss 60 and 60AA of the FBTAA), for the June quarter 2014 increased 0.5 from the March 2014 quarter to 105.9. The Australian Bureau of Statistics (ABS) said inflation was running at 3.0% through the year to 30 June 2014 (up from 2.9% through the year…
In an address in Melbourne on Fri 4.7.2014, Treasury Revenue Group Executive Director Rob Heferen gave his perspective on the opportunities that globalisation and the digital age have created, and in particular the implications for Australia’s corporate tax system and the tax system as a whole. Some of the points he made included: International commerce…
The ATO has released details of the lodgment program for 2014-15 for tax agents and BAS agents. The program details the concessional lodgment due dates registered agents receive during the 12 months ending 30 June 2015. Where a due date falls on a weekend or public holiday, the ATO says lodgment or payment may be made on the next…
The ATO on Mon 28.7.2014, issued Taxpayer Alert TA 2014/1 which describes arrangements where property developers use trusts to return the proceeds from property development as capital gains instead of income on revenue account. ATO Deputy Commissioner Tim Dyce said the ATO has “begun auditing property developers who are carrying out activities which conflict with…
The ATO on Wed 30.7.2014 released for comment Draft Practice Statement Law Administration PS LA 2011/27 (Matters the Commissioner considers when determining whether the ATO view of the law should only be applied prospectively). The ATO is seeking comments on proposed amendments to the Draft Practice Statement following the Full Federal Court’s decision in Macquarie…
The ATO Fri 25.7.2014, issued ATO ID 2014/25 which deals with the following: Is a term deposit provided as security for a performance bond a right or obligation under a guarantee or indemnity subject to the exception in s 230-460(8) of the ITAA 1997? The ID says no, the term deposit is not a guarantee or…
The ATO on Wed 16.7.2014, released Product Ruling PR 2014/16 (Tax consequences for employees and employers under a LeasePlan novated vehicle lease). It applies to entities that enter into the scheme from Wed 16.7.2014 until 30 June 2017. The Ruling states that subject to certain assumptions, payments of the monthly rental by the employer, under the novated…
The ATO on Wed 2.7.2014, issued the following Product Rulings: PR 2014/13: CommInsure Protection – Split TPD Cover. It applies to entities that enter into the scheme from 1 July 2014 until 30 June 2017. The Ruling states that a SMSF that is a complying super fund and holds a policy to which split TPD cover applies as a…
The ATO on Wed 9.7.2014, issued the following Class Rulings: CR 2014/57: MYOB Group Pty Limited – Return of Capital. It applies from 1 January 2014 to 31 December 2014. Among other things, the Ruling states that the return of capital will not be a dividend as defined in s 6(1) of the ITAA 1936. CR 2014/58: Unitywater early retirement…
The ATO Wed 2.7.2014, released the following Class Rulings: CR 2014/54: Goodman Group Long Term Incentive Plan. It applies from 1 July 2012. The Ruling broadly states that the rights acquired under the scheme are ESS interests acquired under an employee share scheme and Div 83A of the ITAA 1997 will apply to the interests. CR 2014/55: Australian…