Re Wynnum Holdings No 1 Pty Ltd & Ors v FCT – taxpayers withdrew appeal – input tax credits remain disallowed; no enterprise and not ‘commercial residential premises [73]

Tax Month - May 2013

The taxpayers have discontinued their appeal to the Federal Court against the decision of Frost DP in AAT Case [2012] AATA 616, Re Wynnum Holdings No 1 Pty Ltd & Ors and FCT. The AAT decision, which now stands, had held the nominee and bare trustee of a joint venture trust was not carrying on…

Personal Services Income (PSI) – ATO will write to certain taxpayers and tax agents encouraging voluntary disclosures where appropriate [65]

Tax Month - May 2013

The ATO has advised that in May 2013 it will be writing to some taxpayers asking them to review their income tax returns for the 2011-12 year. It says those taxpayers will be asked to review whether the business income they have reported in their tax returns may be in full or part, be classified as personal services income…

*ATO targets complex offshore structures with substantial data it is sharing with other revenue authorities [64]

Tax Month - May 2013

The ATO on Fri 10.5.2013, advised that along with Tax Commissioners from the US and UK, it has obtained substantial data which reveals the extensive use of complex offshore structures to conceal assets by wealthy individuals and companies. It says preliminary analysis of the data indicates that the offshore structures are located in a number…

Yacoub v FCT – Taxpayers withdraw their appeal against decision that GST was payable on properties sold [72]

Tax Month - May 2013

The taxpayers have discontinued their appeal to the Full Federal Court against the decision of Jagot J in Yacoub v FCT (2012) 83 ATR 722 / [2012] AATA 401. The Federal Court’s decision, which now stands, had dismissed appeals by the taxpayers concerning the Commissioner’s decision to disallow an objection to a notice of assessment for the…

*ATO reminder about Trustee resolutions – by 30 June or earlier if required by Deed, and in writing if required by Deed or to ‘stream’ [68]

Tax Month - May 2013

The ATO has reminded trustees who make beneficiaries entitled to trust income by way of a resolution that they must do so by the end of the year (ie 30 June). It said the resolution will determine who is to be assessed on the trust’s taxable income. The ATO said trustees should consult the relevant trust…

*TD 2013/D4 – An employee can’t avoid the Div 35 sub-$250k ‘income test’ by the employer re-imbursing him part of the business expenses – they are part of Div 35 ‘excess’ [59]

Tax Month - May 2013

This Draft Determination, released on Wed 29.5.2013, states that when an employer reimburses an employee for an amount of expenditure incurred to a third party, under a salary sacrifice (or similar) arrangement, and that expenditure would otherwise have been subject to the ‘non-commercial’ business loss provisions in Div 35 of the ITAA 1997, the sub-$250k “income…

*ATO trusts taskforce targets [67]

Tax Month - May 2013

In the 2013 Budget, it was announced that the Government would provide $67.9m over 4 years to the ATO to undertake compliance activity in relation to trust structures. The ATO has released further information on the potential targets of this compliance action utilising its intelligence systems, including new tax return labels. It said some of…