NSW Land Tax – Carberry v Chief Comr of State Revenue – land owner not entitled to exemption for land intended to be his principal place of residence – buildings occupied by tenants paying rent

The NSW Civil and Administrative Tribunal has found that a land owner was not exempt from land tax, as his principal place of residence’ under Schedule 1A of the Land Tax Management Act 1956 (NSW – more particularly, under s6, which gives exemption for ‘unoccupied land intended to be the owner’s principal place of residence’.…

FCT v Chen – Asset freezing order granted over Australian and international debts to protect expected judgement for $7.5m tax debts

The Federal Court has granted the Commissioner a freezing order of the assets of a taxpayer concerning a $7.5 million tax debt. The Commissioner had sought freezing orders against the taxpayer under Division 7.4 of the Federal Court Rules 2011 (Cth).  After hearing counsel for the Commission, Colvin J made orders substantially in the terms sought.…

ATO’s ’10 top MYTHS’ about deductions that taxpayers can claim – $150 for clothing and laundry, $300 for work related expenses, 5,000 km of car travel, etc.

On 30 July 2018, the ATO uploaded their 10 top ‘myths’ about tax deductions. Top 10 tax myths Myth 1: Everyone can automatically claim $150 for clothing and laundry, 5000 kilometres for car related expenses, or $300 for work-related expenses, even if they didn’t spend the money Fact:   The record-keeping exemptions provide relief from the need…

Stapled structures & other measures: revised draft legislation released – extending measures to agricultural land, changing Thin Cap laws on MIT Staples, limiting foreign super and government concessions, leaving MIT concessions for ‘affordable housing’

On Friday 27 July 2018, Treasury released, for public consultation, the second stage of draft legislation, giving effect to the measures announced on 27 March 2018 that seek to address risks to the corporate tax base, posed by: stapled structures and similar arrangements, as the law currently stands, and limiting access to concessions currently available to foreign…

MSAUS v CofT – ATO explains why it didn’t appeal an AAT decision on the effectiveness of a GST clause (to apply the ‘margin scheme’) which contradicts the Full Federal Court conclusion on the same clause in the South Steyne case

On 26 July 2018, the ATO issued a draft Decision Impact Statement (DIS) on the GST case: MSAUS Pty Ltd v. Commissioner of Taxation [2017] AATA 1408, which defied earlier cases on sale of apartments in the same block, but the Commissioner chose not to appeal. The background facts and GST decisions (common to all the…

TZSX v CofT – AAT upholds Commissioner’s decision to not issue a further ‘departure authorisation certificate’ – security offered was too little and uncertain compared with the $33m tax debt (in dispute)

The AAT has refused a taxpayer’s application for review of the Commissioner’s decision not to issue an extension of a departure authorisation certificate (DAC). On 21 September 2017, the Commissioner issued amended assessments to the taxpayer for the income year ended 30 June 2007 totalling $33.33 million. The Commissioner assessed the tax liability based on the transfer of US$21…

Europeans press for digital tax turnover tax, at the July Buenos Aires G20 meeting, as an interim measure – Australian Treasurer not moved by ‘digital advertising sales tax’ approach

BUENOS AIRES (Reuters) – European finance leaders called for progress on global rules to tax the digital economy at a meeting of G20 finance ministers and central bankers in Argentina on Sunday 22 July 2018, putting them at odds with US counterparts. The final communique reaffirmed a commitment to address the impacts of the shift to a…

Productivity Commission findings on SMSF costs and minimum $1m size are “flawed” – according to the SMSF Association

The SMSF Association put out a media release, on 25 July 2018, tackling the Productivity Commission’s draft findings, about the cost effectiveness of self-managed super funds (SMSFs). It says the Commission uses evidence that is “fundamentally flawed” and does not consider broader motivations on why individuals set up SMSFs. “Factors such as data problems, investment…

Inbound supply chain (ICS) strategy to counter ‘transfer pricing risk’ – starting with 4 industries and developing a PCG

On 15 December 2017, the ATO released the report, Tax and Corporate Australia. This report identified that there is a key compliance risk associated with the transfer pricing of inbound supply chain (ISC) arrangements. The report questions whether appropriate profit is being recognised in Australia where goods or services are being purchased from a related party and…

Top 1000 Tax Performance Program (streamlined assurance reviews): timing set to minimise duplication of effort – particularly when APAs are in place or being negotiated

Large public and multinational groups with turnover above $250 million comprise what the ATO calls the ‘Top 1000’ and it has a ‘performance program’ to review the income tax affairs of those that that they do not engage with through pre-lodgment compliance reviews or annual compliance arrangements. On 23 July 2018, the ATO uploaded a…