Category Archives: Tax Month – November 2014

*GSTR 2014/D5 – GST: development lease arrangements and government agencies – when there are supplies for consideration [51]

The ATO on Wed 12.11.2014, issued Draft GST Ruling GSTR 2014/D5 which explains the GST treatment of particular transactions arising in the context of development lease arrangements entered into between government agencies and private developers. It broadly states that the identification of the supplies that are made for consideration arising under a development lease arrangement…

*Re Giuseppe Caporale Structural Engineers Pty Ltd and FCT – GST: Some ITC claims allowed: partial win for taxpayer [50]

The AAT has allowed an engineering company part of its claims for input tax credits (ITCs) in respect of various acquisitions. The Commissioner audited the taxpayer, a structural engineering services company, and issued a notice of assessments of net amount that increased its GST liability on the basis it had not reported all of its…

*RV Investments (Aust) Pty Ltd as Trustee for the RV Unit Trust v FCT – burden of proving creditable acquisition on taxpayer and no question of law [49]

A taxpayer has been unsuccessful before the Federal Court in challenging a decision of the AAT, which had varied the Commissioner’s decisions concerning GST assessments covering 6 quarterly tax periods from 1 July 2009 to 31 December 2010. The taxpayer operated (via a unit trust) a business of repairing, maintaining and hiring motor vehicles. The AAT concluded that the…

*Re Ryan and FCT – Input tax credit claims partly allowed [48]

The AAT has allowed some of a taxpayer’s input tax credit (ITC) claims and remitted the matter to the Commissioner to issue an assessment in accordance with its reasons. The taxpayer was in dispute with the Commissioner with respect to his entitlement to claim ITCs totalling $6,795 in the tax periods between 1 January 2009 to 31 March 2011…

*MBI Properties Pty Ltd v FCT – High Court hears appeal against decision that after the grant of a lease there is no ongoing ‘supply’ [47]

The further hearing of the Commissioner’s appeal against the Full Federal Court decision in MBI Properties Pty Ltd v FCT [2013] FCAFC 112 began on Tue 4.11.2014 before a Full Court of the High Court in Canberra. It is expected this will be the final day of the appeal. The Full Federal Court had overturned…

Building and construction industry: last chance for 2013-14 Annual Report due on 21 July 2014 to be lodged without penalties [46]

The ATO has advised that it is writing to businesses in the building and construction industry who have not lodged their 2013-14 Taxable payments annual report. It said the letter will generally be sent to businesses and will remind them that the report is now overdue. Taxable payments annual reports were due by 21 July. The…

Project DO IT: ATO scenarios on dealing with offshore structures [45]

With just under a month to go until Project DO IT closes on 19 December 2014, the Tax Office has provided some further guidance on dealing with offshore structures to qualify for the benefits available under Project DO IT. One of the key eligibility conditions requires a taxpayer to ensure that their offshore structure is brought within…

Cash economy in Geelong and Wagga Wagga – ATO statement [44]

According to the ATO and its latest statistics, almost 2,500 businesses in the Geelong (Vic) region and over 700 businesses in the Wagga Wagga (NSW) region, may be deliberately hiding income to gain an unfair advantage over their competitors. ATO Senior Assistant Commissioner Michael Hardy said the ATO has identified these businesses as potentially being involved in…

*Share transactions from 20 September 1985 to 30 June 2016 from share registry companies: ATO data-matching program [43]

The ATO on Tue 18.11.2014, issued a gazette notice advising that it will acquire details of entities share registries for the period 20 September 1985 to 30 June 2016 from the following sources: Link Market Services Limited; Computershare Limited; Australian Securities Exchange Limited; Boardroom Pty Ltd; Advanced Share Registry Services Pty Ltd; and Security Transfer Registrars Pty Ltd. The…

*Commissioner says ATO is rethinking its compliance approaches – including seeking ‘declaratory relief’ [42]

In a recent address to the Tax Bar Association, the Tax Commissioner said the ATO was taking “a fresh look” at its compliance approaches. Given that the vast majority of taxpayers willingly comply with their obligations, Mr Jordan said it was logical that the ATO should focus more on encouragement and support rather than deterrence and…