Category Archives: Tax Month – May 2019

Seven Network (Operations) Limited v Screen Australia – Bride and Prejudice series not a ‘documentary’ – no Australian film production tax offset

In this case, In Seven Network (Operations) Limited failed in an important step to get a ‘tax offset’ for Australian film production expenditure in producing its ‘Bride and prejudice’ series. Screen Australia had refused to issue the necessary certificate required under s376-65 of the ITAA97. The case turned on whether the series was a ‘documentary’ and the AAT…

PwC Australia discloses its tax contribution to the Australian economy – average rate 37%

On 1 May 2019, PwC announced that profits from the firm are taxed at an average rate of 37%. This was in response to  increasing interest in the tax position of the Big 4 professional services firms, including a recent request of the ATO by the Senate Economics Legislation Committee. In response, the ATO said…

The ATO’s ‘Compensation for Detriment Caused by Defective Administration’ is the subject of review for the benefit of ‘small business’

The Scheme for the Compensation for Detriment Caused by Defective Administration (the CDDA Scheme) is the subject of review by a Mr Robert Cornall AO – appointed by the Minister for Finance and Assistant Treasurer. This was on 25 February 2019. The A/g IGTO and Deputy met with Mr Cornall and his team at his request…

ATO puts tax crime ‘case studies’ on its website – details salutary

On 3 May 2019, the ATO updated one of its website pages: ‘Tax crime prosecution case studies’. It gives details of: a company director who failed to lodge 5 activity statements (fined $51,500). 5 employees who falsely claimed work related ‘drive in, drive out’ travel expenses, despite them having been reimbursed (aggregate fines over $50,000).…

ATO Advice under development program – May update

On 8 May 2019, the ATO distributed a list of subjects, where advice is ‘under development’. They include, income tax, international, CGT, consolidation, trust, GST, excite, FBT, superannuation, not-for-profit sector, and administration issues. See below for the full list and relevant links. FJM 8.5.19 [Tax Month – May 2019]

Rinehart & Anor v Hancock Prospecting Pty Ltd & Ors – High Court gives orders on mediation and parties to the mediation (not tax, but interesting)

The High Court has given Gina Rhinehart orders binding her children to have their claims dealt with by confidential mediation and it has given her children orders that their companies’ claims be dealt with in that mediation. This is not tax, but it’s so topical, I thought it worth noting. The decisions and the citation…

Paule & Ors v CofT – taxpayers appeal decision that a capital gain on shares following roll-overs was not a discount capital gain

The taxpayers have appealed to the Full Federal Court from the decision of Thawley J in Paule & Ors v CofT [2019] FCA 394. The Federal Court had held that a capital gain made on the sale of shares following a series of roll-overs was not a discount capital gain, as the shares were not deemed…

Ransley – withdrew her appeal against a decision that her profit was not taxed as a capital gain

The taxpayer has withdrawn and discontinued her appeal to the Full Federal Court from the decision of the AAT in Ransley and CofT [2018] AATA 4359. The AAT had decided that the profit on the sale of shares in a mining company was assessable income and not, as contended by the taxpayer, a capital gain.…

ISA report calls the number of employees who are underpaid super, and the extent to which they fall behind, a ‘scandal’ that must be fixed

On 3 May 2019, Industry Super Australia, released a report entitled: ‘Super Scandal – unpaid Super Guarantee in 2016-17. It reported that analysis shows since the first ISA analysis of ATO data in 2013/14, the number of workers short-changed super has climbed by 90,000 to a total of 2.85 million Australians being ripped off $5.94 billion…

OECD releases 10th edition of its publication: OECD Model Tax Convention on Income and on Capital

On 25 April 2019, the OECD released the tenth edition of its publication: the OECD Model Tax Convention on Income and on Capital. This full version contains the full text of the Model Tax Convention as it read on 21 November 2017, including the Articles, Commentaries, non-member economies’ positions, the Recommendation of the OECD Council, the…