Category Archives: Tax Month – November 2016

PCG 2016/D17 – ATO compliance approach to exploration expenditure deductions under s8-1 or s40-730 – problem areas identified and role of systems and governance assurances to ATO

On Monday 14 Nov 2016, the ATO released a draft of its Practical Compliance Guideline PCG 2016/D17 dealing with the ATO’s compliance approach to exploration expenditure deductions. Draft Taxation Ruling TR 2015/D4 (Income tax: deductions for mining and petroleum expenditure) provides the ATO’s view in relation to the deductibility under s8-1 and s40-730(1) of the…

ATO’s initiatives in Super – advice of reporting changes with new legislation; sharing data, not auditing; individualized report on 13 benchmarks for 261 large funds – ATO speech to ASFA

ATO Deputy Commissioner Superannuation, James O’Halloran, gave a speech to the ASFA National Superannuation Conference on the Gold Coast on 10 November 2016 where he spoke on the ATO’s perspective on risk and compliance. Some of the points he made included: In relation to the major superannuation reform Bills introduced last week, he said the ATO has already…

Hua Wang Bank Berhad; Bywater Investments & Ors v Commissioner of Taxation – taxpayers resident; foreign income taxed – foreign directors met overseas but ‘rubber stamped’ decisions made in Australia (by Vanda Gould)

On 16 Nov 2016, the High Court unanimously dismissed appeals by four companies (“the appellants”) from a decision of the Full Court of the Federal Court of Australia. The High Court held that the appellants were Australian residents for income tax purposes during the relevant years and were thus liable to tax in Australia on…

Tas stamp duty: Refund re retrospective exemption from duty on certain statutory vesting transactions

The Tasmanian State Revenue Office (SRO) has noted that the Taxation and Related Legislation (Miscellaneous Amendments) Act 2016 (Tas) introduced a retrospective exemption from duty (effective 1 July 2001) for certain statutory vesting transactions, including where dutiable property vests as the consequence of the registration or cancellation of a strata plan under the Strata Titles Act 1998…

Vic: State Taxation Acts Further Amendment Bill 2016 receives Royal Assent – Payroll Tax motor vehicle allowances; Land Tax – taxable value; surcharge rate for absentee trusts

The State Taxation Acts Further Amendment Bill 2016 (Vic) has passed all stages without amendment and received Royal Assent on 15/11/16 as Act No. 66 of 2016. It amends the Payroll Tax Act 2007 (Vic) to update the way the exempt rate used in the calculation of the exempt component of motor vehicle allowances is…

Re Abichandani and ASIC – AAT overturned ASIC decision to disqualify a highly qualified SMSF auditor, finding that the auditor had not been untruthful in withdrawing a complaint and that he was a ‘fit and proper person’

ASIC had disqualified the Applicant from being an approved SMSF auditor on the basis that he was not a ‘fit and proper person’ but the AAT set aside ASIC’s decision. The facts are set out in the beginning of the AAT’s decision as follows. Mr Abichandani holds various bachelor degrees in commerce and accounting. He…

Kishore v Tax Practitioners Board – Tax agent fighting deregistration argued resignation couldn’t determine ‘honesty’ under ‘Code’ – AAT determined that it could and appeal to Fed Crt was ‘incompetent’ as AAT had not finished

An applicant has been unsuccessful before the Federal Court in a matter concerning the decision of the Tax Practitioners Board to terminate his tax agent registration following his separation from his former employer. By letter dated 10 October 2014, the Board notified the applicant that it had decided to terminate his registration as a tax agent with…

2016-17 Superannuation Reforms – Treasury updates its summary and fact sheets

Legislation to implement the Government’s superannuation reforms passed the Parliament on 23 November 2016. The superannuation reform package was announced in the 2016-17 Budget and amended following consultation. On 9 November 2016, the Government introduced the Superannuation (Objective) Bill 2016, which will enshrine the objective of superannuation in legislation. The Objective Bill is being considered by the Economics Legislative Committee,…

Millar v FCT – taxpayer fails to get leave to appeal the Full Federal Court decision that the ‘back to back’ loan agreements were a ‘sham’ despite there being no actual intention to deceive (just sign here)

The High Court has refused husband and wife taxpayers special leave to appeal against the decision of the Full Federal Court in Millar v FCT [2016] FCAFC 94. The Full Federal Court had confirmed the Commissioner’s assessments, based on certain ‘back-to-back’ loans being shams, such that their superannuation fund had actually paid a benefit directly…

NSW payroll tax: Tacey v Chief Comr of State Revenue – chemist ‘grouped’ with staff placement agency – primary tax not in dispute; appeal of 25% ‘lack of reasonable care’ penalty failed but had interest penalties reduced

The NSW Civil and Administrative Tribunal affirmed a penalty assessment imposed following a payroll tax default, but reduced the interest premium component. The applicant was a sole trader, trading as John Tacey Chemist, operating a number of pharmacies in New South Wales. He was properly grouped with the other taxpayers for the purposes of the…