Category Archives: Tax Month – May 2016

NSW payroll tax: Eastside Veterinary Emergency & Specialists Pty Ltd v Chief Comr of State Revenue – degrouping discretion denied

On Thursday 26.5.2016, the NSW Civil and Administrative Tribunal affirmed the Commissioner’s decision not to de-group the taxpayer under s79 of the Payroll Tax Act 2007 (NSW). The taxpayer accepted it was properly grouped with 2 other entities for the period from 19 December 2011 to 31 August 2014. However, the taxpayer argued that it carried on different and independent businesses…

Tax (financial) advisers’ code of professional conduct – draft TPB Information Sheets on Code of Professional Conduct obligations: conflicts of interest; know your client; best interests of client; etc.

The Tax Practitioners Board has issued the following Draft Information Sheets: Having adequate arrangements for managing conflicts of interest for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 5 of the Code of Professional Conduct: TPB(i) D35/2016. Code Item 5 requires registered tax (financial) advisers (and tax and BAS agents) to have adequate arrangements…

LCG 2016/1 – GST: new law for supplies into Australia, including a new test for carrying on enterprise in Australia

On Thursday 26.5.2016, the ATO issued Law Companion Guideline LCG 2016/1 (GST and carrying on an enterprise in the indirect tax zone (Australia)). It discusses: a test in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016 (“the Amending Act”) for when an enterprise of an entity is carried on in the indirect tax zone (Australia);…

NT Budget 2016-17: 50% discount on transfer duty for first home buyers for 14 months (capped at $10,000)

On Tuesday 24.5.16, the NT Treasurer delivered the NT Budget 2016-17 announcing a 50% stamp duty discount for first home buyers on the purchase of an established home. The discount will be capped at $10,000. It will apply to contracts entered into on or after 24 May 2016 until 30 June 2017. It is the discount that is capped at $10,000…

WA land tax: Carter & Ors and Comr of State Revenue – construction of private residence exemption allowed – partition of old lot into 4 more did not matter

Four couples (the taxpayers) have been successful before the WA State Administrative Tribunal in a matter concerning a private residence construction land tax exemption. In July 2008, 4 couples purchased a property (Lot 29) intending to develop 4 new apartments. In October 2011, a partial exemption under s24A of the Land Tax Assessment Act 2002 (WA) was granted on the condition…

Delis & Anor v Tax Practitioners’ Board – Federal Court upholds AAT’s decision refusing registration of the tax agent because he was not a ‘fit and proper person’

The Federal Court has dismissed appeals by an individual and a company (of which he was the sole director) from the decision in Re Delis and Tax Practitioners Board [2015] AATA 820, effectively affirming the decisions of the TPB to refuse their renewal of registration as tax agents. The individual and the company were registered tax…

FCT v AP Energy Investments Pty Ltd – a Chinese company was not liable for CGT on sale of shares in Australian mining company because of the first instance Tribunal decision as to the value of ‘mining information’

On Wednesday 25.5.2016, the Federal Court dismissed the Commissioner’s appeal from the decision in AAT Case [2013] AATA 626, Re AP Energy Investments Limited and FCT, effectively holding that the taxpayer company (a Chinese company) was not liable for CGT on sale of shares it held in an Australian mining company. The AAT had ruled that…

FCT v Seven Network Limited – Payments to the IOC for the broadcasting rights to the Olympics (i.e. for the ‘use’ their ITVR Signal) not royalties within the Double Tax Treaty and required no withholding – Commissioner loses appeal

The Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision of Bennett J in Seven Network Limited v FCT [2014] FCA 1411, effectively holding that payments made by Seven Network Limited [Seven] to the IOC for broadcasting rights to the Olympic Games were not royalties under Article 12(3) of the Australia-Switzerland DTA, and that it was…

CR 2016/31-33 – FBT car log book; FBT entertainment; off market take over

On Wednesday 25.5.2015, the ATO issued the following Class Rulings: CR 2016/31: FBT: employers who use the mTrax GPS system for car log book records and for odometer records. It applies from 29 February 2016. CR 2016/32: FBT: employer clients of Australia and New Zealand Banking Group Limited (ANZ) who are subject to the provisions of s 57A of…

TR 2016/2 – TOFA – swaps – to be covered under accrual/realisation rules they must meet the definition in s230-120(1) of the ITAA97

On Wednesday 25.5.2016, the ATO issued Taxation Ruling TR 2016/2 which sets out the Commissioner’s views on the operation of s230-120 of the Income Tax Assessment Act 1997. Section 230-120 modifies the manner in which the accrual/realisation provisions in Subdiv 230-B of the TOFA rules apply to certain “notional principal” arrangements like swaps. The Ruling notes that…