A taxpayer employed by an organisation that delivers services to disabled people, has been denied deductions for various work-related and self-education expenses, but the AAT decided to remit the shortfall penalty by 85% (from 50% down to 7.5% of the shortfall) because of tax agent error. See below for details. [Tax Month – June 2021]…
On Friday 25.6.21, the Commissioner issued TR 2021/D4, which considers whether, receipts from the licensing and distribution of software, qualify as royalties (under the s 6(1) ITAA 1936 definition). It focuses on 3 software distribution models – packaged software, the digital distribution of software and cloud computing arrangements. See below for further detail. [Tax Month – June…
On 23 June the AAT decided that it should reverse the Commissioner’s decision not to grant ‘hardship relief’ and decided that a retired couple, with tax debts totalling almost $106,580 have been granted relief from paying most of those debts – despite pay paying out certain debts, from their collapsed business, ahead of the ATO. See…
On 24 June 2021 the High Court heard the taxpayer’s appeal in the Addy case and reserved its decision. This is the case about the validity of Australia’s ‘backpacker tax’ – under an ‘anti-discrimination’ clause in a Double Tax Agreement – in this one, our agreement with the UK. See below for further details. [Tax Month – June…
Dr Gerry Bean has published an article in the Law Institute Journal assessing directors’ duty to management of environmental, social and governance (ESG) risk. He looks at the open ended duties of directors, at law, and the welter of spectacular reputational collapses, of recent, to argue that is is vital that they do manage ESG risk.…
The Full Federal Court found that payments made by a franchisee in connection with the acquisition of McDonald’s restaurants and described as prepayment of rent were not deductible in Mussalli v Commissioner of Taxation. The Full Federal Court agreed with the decision of the primary judge that the payments were not deductible because they were on…
The issue of whether policy holders can claim on ‘business interruption insurance’ on COVID related interruptions, was determined against insurers, in the NSW Court of Appeal, and on Friday, 25 June 2021, the High Court rejected the insurers leave to appeal. On 28 June, 2021, the law firm: Maurice Blackburn (well known for acting for…
The Government today [Mon 28.6.2021] registered the Australian Charities and Not-for-profits Commission Amendment (2021 Measures No 2) Regulations 2021 to amend the Australian Charities and Not-for-profits Commission Regulation 2013 (ACNC Regs) by extending governance standard 3 of the Regs to prohibit certain kinds of summary offences]. Specifically, the instrument adds a new s 45.15(2)(aa) of the…
VIRGIN AIRLINES: The Commissioner has filed a notice of appeal to the Full Federal Court against the decision of Griffiths J in Virgin Australia Airlines Pty Ltd v FCT [2021] FCA 523. The Federal Court had held that Virgin Airlines did not provide car parking fringe benefits to its flight and cabin crew at Sydney, Brisbane…
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2021 was registered on 17 June 2021. It specifies the interest rate to be used for adjusting the “base amount” allocated in a court order or a superannuation agreement under the Family Law Act 1975 that splits a future defined benefit superannuation interest or an interest in…