Category Archives: Tax Month – July 2020

Auctus Resources Pty Ltd v CofT – ATO could not recover a refundable tax offset for R&D after project disallowed – both parties failed to argue the relevant ‘transitional provision’

On 31 July 2020, the Federal Court found against the Commissioner, who was attempting to recover a refundable tax offset, after Innovation and Science Australia, repudiated the registration of the R&D project. The Commissioner was out of time to issue an amended assessment and tried to use a provision in the ‘running balance provisions’ of…

PS LA 2020/D1 – Super guarantee charge amnesty ending 7 September 2020 – Commissioner’s guidance to staff on remission of additional 200% penalty post-amnesty

On 30 July 2020, the ATO released Draft PS LA 2020/D1, setting out proposed guidelines on the remission of additional super guarantee charge (SGC) after the SG amnesty ends on 7 September 2020. Under Pt 7 of the Superannuation Guarantee (Administration) Act 1992 (SGAA), this additional SGC (Part 7 penalty) is up to 200% of the SGC…

SA: Land tax relief extended – for ‘eligible landlords’ giving COVID rent relief…

On 30 July 2020, the SA Government announced an extension of its land tax relief of up to 25% reduction on eligible landlords’ 2019-20 land tax liability on affected properties – provided the landlords pass on the full benefit in land tax relief to their impacted tenants. The land tax relief scheme will be extended…

Tax Practitioners Board v Hacker – unregistered director also guilty of unregistered practice, for providing ‘tax agent services’ through an unregistered company

In two related cases, the Federal Court has held that, when an unregistered individual provides ‘tax agent services’ (or BAS services) on behalf of an unregistered company, which charges a fee, the individual also contravenes the Tax Agents Services Act 2009 (TASA), having also provided the services for ‘fee or other reward’. See below for…

Duncan v CofT – Payment by director, to settle various claims (trading whilst company insolvent) were not deductible

The AAT found that a lump sum, the taxpayer had been a director of various companies, which went into liquidation, and various claims were brought against him, including for allowing the companies to trade whilst insolvent. The taxpayer paid a lump sum to settle all these claims, but the AAT found the amount was not…

Dapper Coelho v CofT – Working holiday makers’ usual places of abode outside Australia

In Dapper Coelho v CofT, the AAT has decided that 4 working holiday makers who were present in Australia for more than 183-days during the income year were not tax residents of Australia, because their usual place of abode was outside of Australia and they did not intend to take up residence here. See below…

Plutus Payroll (Australia’s biggest tax fraud) – founder: Simon Anquetil jailed for 7 years 6 months (5 years non-parol) – under joint ‘Operation Elbrus’

On 31 July 2020, the Australian Federal Police, Australian Tax Office and Commonwealth Director of Public Prosecutions issued a joint media release, saying that the founder of the ‘Plutus’ tax fraud: Simon Anquetil, was sentenced in the Supreme Court of NSW – to 7 years and 6 months in jail, with a non-parole period of 5…

The work The Tax Institute does in consulting with tax authorities – not only benefits the system but advocates for members also

The Tax Institute’s weekly tax newsletter: TaxVine (No. 29, 31.7.20) carried an article by its Director of Tax Policy and Technical’s Report: Mr Andrew Mills, entitled: “Advocating for members through consultation”. This looks at the various consultation forums established by the ATO and the role Institute members play – in advocating for change under the Institute’s…

CPI: June quarter 2020 index number decreases 2.2 percentage points (the biggest ever recorded)

On 29 July 2020, the Australian Bureau of Statistics (ABS) has released the CPI index number of 114.4 for the June quarter 2020, showing a -2.2 decrease from the March 2020 quarter of 116.6. See below for the tax implications and further detail. [Tax Month – July 2020]  

Chadbourne v CofT – Beneficiary denied deduction for interest on loans used by discretionary trust to buy rental properties

On 10 July 2020, the AAT upheld the ATO’s assessment, deciding that a beneficiary of a discretionary trust, was not entitled to deductions, for interest he incurred on loans used by the trust to acquire rental properties. See below for details. [Tax Month – July 2020]