Category Archives: Tax Month – March 2015

Tax Practitioners Board v Li – Court declares that former tax agent made reckless statements, but declined to impose a pecuniary penalty [68]

The Federal Court has held that a tax agent had breached the Tax Agent Services Act 2009 (TASA) by recklessly making statements to the Commissioner that were false, incorrect or misleading, although it did not impose a pecuniary penalty. Between August and September 2011, the registered tax agent prepared and lodged 90 individual income tax returns based on information…

Charity status of 1,380 “double defaulters” revoked: ACNC [67]

The Australian Charities and Not-for-profits Commission (ACNC) yesterday [Mon 30.3.2015] revoked the charity registrations of 1,380 double defaulter charities who had not submitted their 2013 and 2014 Annual Information Statements. The ACNC Commissioner, Susan Pascoe AM, said revocation “is a last resort”; however, charities that do not meet their obligations will lose their charity registration…

Charities face losing tax concessions for not meeting reporting requirements: ACNC [66]

The Australian Charities and Not-for-profit Commission (ACNC) has warned that 1,400 charities face losing access to a range of Commonwealth tax concessions if they do not submit their overdue reporting before 30 March 2015. These charities have been identified for not having submitted their Annual Information Statement to the ACNC for 2 consecutive years. ACNC Commissioner, Susan…

Accountants providing SMSF advice: limited license exemption and external dispute resolution [65]

Accountants who want to continue to provide SMSF advice from 1 July 2016 must be appropriately licenced. One of the licencing options is a limited AFS licence which requires the accountant to be a member of an ASIC-approved external dispute resolution scheme (EDR) like the Financial Ombudsman Service Australia (FOS). FOS says it will work to “resolve…

SMSF investments that result in loans to members – ATO scrutinising breaches sole purpose test [64]

The ATO says it understands that some individuals and organisations are promoting arrangements where SMSF monies are deposited into unit trusts or pooled investment trusts less a management fee. This money is then used to obtain a personal or business related mortgage which results in the SMSF assets being used to provide members with current-day…

Accessing super to buy a home – Prime Minister’s view [63]

Responding to suggestions that people should be allowed to access their superannuation to help in buying their first home, the Prime Minister said in a doorstop interview [on Mon 9.3.2015] that the idea had “been around for quite some time”. He said it was an idea that “has a lot of currency in other countries,…

2015/16 relevant superannuation rates and thresholds [62]

Superannuation rates and thresholds for 2015/16, 02 March 2015 The ATO has released the key superannuation rates and thresholds for the 2015/16 year. These rates and thresholds have been indexed in accordance with the average weekly ordinary time earnings figures released by the Australian Bureau of Statistics. The key superannuation rates and thresholds include the…

*Munro v Munro – a death benefit nomination form completed by a member of a SMSF was not a binding nomination [61]

The Queensland Supreme Court has held that a death benefit nomination form completed by a member of a self-managed superannuation fund (SMSF) was not a binding nomination. Accordingly, the trustees of the SMSF were not required to pay the benefit on death of the member in accordance with the nomination. Facts – In 2004, Mr…

Ward v FC of T – AAT had jurisdiction – decision NOT to make a determination for excess contributions relief – s292-465(9)(a) absurd – EM mischief [60]

In a preliminary matter, the AAT has found that it has jurisdiction to review the Commissioner’s decision not to make a determination under s292-465 of ITAA 1997 that a taxpayer’s excess non-concessional contributions be disregarded. In November 2012, the Commissioner issued a notice of assessment of excess non-concessional superannuation contributions tax for the 2010/11 year…

Super surcharge and WA police officers: ATO seeks comments [59]

On 27 February 2015, the ATO issued an Interim Decision Impact Statement on Albrecht & Ors v FCT [2014] FCAFC 176. In the case, the Full Federal Court partly allowed appeals by commissioned officers of the Western Australian police force against superannuation contributions tax assessments. The ATO is seeking comment saying further consultation is required to confirm…