This GST Determination, released on Wed 7.3.2012, outlines the circumstances where a Div 129 adjustment may, or may not, arise for services acquired in relation to a proposed merger and acquisition (M&A) transaction that does not eventuate, or proceeds in a different manner to that contemplated. The Determination illustrates the application of its conclusions in…
The Indirect Tax Laws Amendment (Assessment) Bill 2012 was passed by the House of Reps, on Tue 13.3.2012, without amendment and now moves to the Senate. Among other things, the Bill proposes to amend the TAA, the GST Act and other taxation Acts to harmonise the current self-actuating system that applies to GST, the luxury…
The ATO has advised that from Wed 28.3.2012, the Australian Business Register (ABR) will be upgraded to improve functionality for registered tax agents. It says the upgrade will enable registered tax agents to log in and complete ABN applications on behalf of their clients. Further, the ATO says the ABR will now link to a…
The Commissioner on Wed 14.3.2012, released the ATO’s annual 2011 prosecution figures for tax and super offences. He said the ATO’s use of data matching technology to cross check personal and business records such as car registrations and supply orders for businesses has lead to the identification of those exploiting the tax and super systems.…
The ATO has released the most recent Project Wickenby results. It said as at 31 January 2012 the taskforce has resulted in: $1.26bn in tax liabilities raised; $287.44m in tax collected; 65 people charged with serious offences; 22 people convicted of serious offences; 12 criminal investigations currently in progress; $105.25m in assets restrained; and $307.6m…
The Tax Office has advised that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) rates for the 4th quarter of the 2011-12 financial year (ie 1 April 2012 – 30 June 2012) are as follows: GIC annual rate is 11.37%; GIC daily compounding rate is 0.03106557%; SIC annual rate is 7.37%; SIC daily…
The ATO has advised that eligible tax agents will be provided with an additional 4 week lodgment deferral for the 2012 FBT return to 25 June 2012. It says the deferral only applies to lodgment and not payment (any payments required are still due by 28 May 2012). The ATO says the deferral is automatic,…
The ATO on Wed 21.3.2012, issued Taxpayer Alert TA 2012/1 warning taxpayers of arrangements under which Australian resident taxpayers do not correctly include income and other taxable amounts from foreign sources in their assessable income for Australian tax purposes. The arrangements involve Australian resident taxpayers deriving foreign sourced income that is either received in Australia…
The ATO on Wed 28.3.2012, issued the following Class Rulings: CR 2012/18: Vermilion Australia Limited Partnership – changes to awards under the Australian Award Incentive Plan. It applies from 2 September 2010 to 30 June 2011. The Ruling broadly states that changes to the incentive plan did not cause the ending of the ownership of…
The ATO on Wed 14.3.2012, issued the following Class Rulings: CR 2012/15: Return of capital – UXC Limited. It applies from 1 July 2011 to 30 June 2012. The Ruling broadly states that the return of capital to UXC shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2012/16:…