Category Archives: Tax Month – March 2020

Debt collection relief in the Government’s 2nd tranche Coronavirus support package – useful but not all the ATO’s collection powers are curtailed (see PP comment)

The Government’s 22 March 2020 Coronavirus 2nd tranche support package (see related TT article) included a number of material measures relevant to the insolvency industry. Pitcher Partners’ insolvency practice put out ‘Critical Point Network’ Bulletin, entitled Proposed immediate insolvency measures announced by the Government, which offers some more detail and provide comment. They go through the general…

Douglas v CofT – Lump sum arrears of disability pay a tax-free superannuation lump sum

On 13 March 2020, the Deputy President Logan, in the Administrative Appeals Tribunal (AAT) decided that A lump sum payment in arrears of invalidity pay was a superannuation lump sum and a disability superannuation benefit and thus not assessable as ordinary income.

See below for details.

[Tax Month – March 2020]

 

SMSF Regulator’s Bulletin SMSFRB 2020/1 – SMSFs undertaking property developments: ATO flags concerns and lists a welter of tax and regulatory implications

On 13 March 2020, the Commissioner issued a SMSF Regulator’s Bulletin SMSFRB 2020/1, setting out the ATO’s concerns about self-managed superannuation funds (SMSFs) entering into certain arrangements, with related or unrelated parties, involving the purchase and development of real property for subsequent disposal or leasing. See below for further detail. [Tax Month – March 2020]…

MyGovID: SHORT TERM PAIN – 6 steps, 6 problems and no extensions for changeover (27 March 2020 is the end of the old system)

On 20 March 2020, the Tax Institute’s weekly tax bulletin: TaxVine (No. 10), their Senior Tax Counsel’s Report, Bob Deutsch wrote and article entitled: MyGovID: SHORT TERM PAIN, LONG TERM GAIN.

See below for further detail.

[Tax Month – March 2020]

WA Duty: Commissioner of State Revenue v Rojoda Pty Ltd – High Court analyses the rights of partners and held two remedial deeds dutiable as declaring trusts different to those the former partners had previously enjoyed

On 18 March 2020, the High Court decided (by majority of 4 to 1) that two deeds remedial deeds, that sorted out partnership interests in land, after one of 2 joint trustees died and one of 5 partners died, were dutiable because the created fixed interests, which were different from their former  interests as partners…

TR 2001/13 Addendum – update to interpretation of Double Tax Agreements (DTAs) – for MLI, case law, income and capital commentary and ‘source’ rules applying as a ‘sword’ (not just a ‘shield’)

On Wed 18.3.2020, the ATO issued an Addendum to Taxation Ruling TR 2001/13, its ruling on interpreting Australia’s double tax agreements.

See below for a summary of the ruling and update.

[Tax Month – March 2020]

SWPD v CofT – long-term owner of largely native forest, who had not harvested any trees, held to be ‘carrying on a business’ and entitled to small business CGT relief

On 18 March 2020, the Administrative Appeals Tribunal (AAT) decided that A taxpayer who owned land containing native forest that was not harvested during his 24-year period of ownership was carrying on a business and therefore able to utilise the CGT small business concessions. See below for a summary of the case. [Tax Month – March…

ACNC announced it would commence a review of about 500 registered charities for their eligibility for registration

On 19 March 2020, the Australian Charities and Not-for-profits Commission (ACNC) announced it would commence a review of about 500 registered charities for their eligibility for registration.

See below for further details.

[Tax Month – March 2020]

Synthesised text of Australia’s double taxation agreement (DTA) with Canada with the MLI – released by the ATO

On Friday 20.3.20, the ATO released a synthesised text of Australia’s double taxation agreement (DTA) with Canada. It outlines the modifications that have been made to the DTA by the Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting (known as the ‘Multi-lateral Instrument’ or ‘MLI’) See below for an…

Superannuation Guarantee Amnesty – ATO guidance on the 6 month regime, including the ‘approved form’ etc.

On 10 March 2020, the ATO published a post on its website noting that the 6 month amnesty had started on 6 March 2020 (when the Bill got Royal Assent). It has a more practical slant than the related TT article posted at the same time. See below for further details. [Tax Month – March…