Re Walker and FCT – Deductions for travel, accommodation, food not allowed as taxpayer not an itinerant worker

Tax Month - March 2017

The AAT has affirmed the Commissioner’s decision to deny deductions for over $25,000 for meals, groceries, accommodation, motor vehicle, caravan, mobile phone and internet services, incurred in the 2014 and 2015 income years. Normally, home to work travel, travel between two different employments, and other private expenses are not deductible, on authority of the High…

Tech Mahindra Limited v FCT – High Court refused taxpayer’s application to appeal – Full Federal Court decision stands that work performed from Indian PE was taxable in Australia as a ‘know-how’ based ‘royalty’

Tax Month - March 2017

The High Court, sitting in Sydney, has refused the taxpayer’s application for special leave to appeal against the Full Federal Court decision in Tech Mahindra Limited v FCT [2016] FCAFC 130. The Full Federal Court decision, which now stands, dismissed the taxpayer’s appeal, effectively upholding the judgment of Perry J in September 2016 that a company resident in…

Diverted Profits Tax Bills pass Lower House and move to Senate – 40% tax on profits diverted by ‘significant global entities’ to jurisdiction with less than 80% of our tax rate – nasty dispute resolution features too

Tax Month - March 2017

On Tuesday 21.3.2017, the Lower House passed the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 and the Diverted Profits Tax Bill 2017. The Diverted Profits Tax Bill was passed without amendment but the Multinational Tax Avoidance Bill was amended to clarify the interaction between the controlled foreign companies (CFC) rules in Pt X…