Category Archives: Tax Month – June 2014

*ACNC reminders for charities – lodge their 2013 Annual Information Statement by 30.6.14 or risk removal from register and loss of tax exemption [73]

The Australian Charities and Not-for-profits Commission (ACNC) has reminded charities of the 30 June 2014 deadline for lodging their 2013 Annual Information Statement. The ACNC warned it is a legal requirement that all registered charities submit an annual statement. Details of how to lodge the 2013 Annual Information Statement can found at acnc.gov.au/2013AIS or contact the ACNC…

The Mining Tax repeal Act re-introduced [71]

The Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 [No 2], also re-introduced on Mon 23.6.2014, proposes to repeal the mining tax and make consequential amendments to other legislation, including the ITAA 1997 and the Taxation Administration Act 1953, required as a result of the repeal of the MRRT. These include repeal of:…

Fishermen joint venturers not ‘employees’ for super (SGC) purposes: ATO view on AAT case: Re Dominic B Fishing Pty Ltd and FCT [68]

The ATO on Thur 5.6.2014, issued a Decision Impact Statement on the decision in AAT Case [2014] AATA 205, Re Dominic B Fishing Pty Ltd and FCT. In that case, the AAT held that fishing crew members on a commercial fishing vessel operated by the taxpayer, were not “employees”, at common law, or under the…

Carbon Tax repeal Acts re-introduced [70]

The Government re-introduced a series of Bills in the House of Reps on Mon 23.6.2014, to repeal the carbon tax and the mining tax and related measures. The Bills had previously been defeated in the Senate. The carbon tax repeal Bills are: Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 [No 2]. Clean Energy (Income…

Re Advent 7 Pty Ltd and FCT – ITC claims denied as they were not substantiated [67]

The AAT has rejected a taxpayer’s appeal and upheld the Commissioner’s disallowance of its input tax credit (ITC) claims. The taxpayer’s main business activity was computer system design, although it also marketed licensed computer software. It accounted for GST on a cash basis. The Commissioner audited the taxpayer and reduced its ITC claims from $404,491…

*Re North Sydney Developments Pty Ltd and FCT – GST: taxpayer’s letter to the ATO was a sufficient s105-55 ‘stop the clock’ notification of ITC entitlement [66]

A taxpayer has been successful before the AAT in seeking orders to allow its claim for GST input tax credits, totalling $2.8m, and to set aside a private ruling issued by the Commissioner, which had refused its claim [to those credits]. The taxpayer claimed it was entitled to ITCs of $2.2m (relating to December 2005) and $600,000…

*Re Dotrac Pty Ltd & Ors and FCT – GST: no enterprise re property development, so input tax credits refused [65]

Two taxpayers have been unsuccessful before the AAT in a matter concerning input tax credits (ITCs) claims in respect of purported acquisitions made in 2 property developments. The first taxpayer (a company) and the second taxpayer (a partnership of 2 individuals) claimed to have made acquisitions in relation to property development. The first taxpayer also…

*Tax Laws Amendment (2014 Measures No 1) Bill 2014 receives Royal Assent: (1) limited refunds of overpaid GST [64]

The Tax Laws Amendment (2014 Measures No 1) Bill 2014 on 30 May 2014 received Royal Assent as Act No 34 of 2014. It had passed all stages without amendment. The Bill amends the GST Act and the TAA to ensure that overpaid GST is refundable only in certain circumstances. [LTN 104, 2/6/14]

*2013-14 tax return forms, schedules, and accompanying guides released [63]

The Tax Office has released the following tax return forms, schedules and accompanying guides for the 2013-14 financial year: Business industry codes 2014 CGT schedule 2014 Company tax return and instructions 2014 Consolidated groups losses schedule 2014 Dividend and interest schedule 2014 Explanatory notes for the life insurance companies taxation schedule 2014 Family trust election,…

*PAYG instalments – GDP adjustment for 2014–15 is 4% [62]

Each year, the ATO adjusts PAYG instalment amounts using a formula that takes into account the expected growth in the economy. For the 2014-15 income year, the ATO has advised that the GDP adjustment used to work out taxpayers’ quarterly PAYG instalment amounts will be 4%. [LTN 123, 30/6/14]