Category Archives: Tax Month – November 2017

Watts v CofT – work related deductions denied – expensive cloths required but not vocationally specific and for travel expenses up to the Commissioner’s reasonable limits, although not incurred – 50% penalty upheld

The AAT has upheld the Commissioner’s decision to disallow a range of work related expenses, claimed by a public servant and upheld a decision to impost a 50% administrative penalty for being reckless. The taxpayer, an employee with the Department of Finance, claimed various work-related travel expenses, clothing expenses and self-education expenses in her tax…

ATO statement regarding the ‘Paradise Papers’ – ATO with JITSIC will add this, to their efforts in processing the ‘Panama Papers’ – targeting Australian connections

On 6 November 2017 the International Consortium of Investigative Journalists (ICIJ) reported that they had significant amounts of leaked information from an offshore law firm Appleby in Bermuda – that they called the ‘Paradise Papers’. The ATO was anticipating this release and issued the following media release, to coincide with the ICIJ release of the Paradise Papers.…

ICIJ releases The ‘Paradise Papers’ (Bermuda) – echoes of the ‘Panama Papers’ – 13 million documents, from over 50 years leaked from Appleby law firm involving multi-nationals, politicians, political donors (and more … )

On Sunday 5 November 2017, the International Consortium of Investigative Journalists issued this media release. On that day the ICIJ released The Paradise Papers, a global investigation that reveals the offshore activities of some of the world’s most powerful people and companies. ICIJ and 95 media partners explored 13.4 million leaked files from a combination of…

TR 2017/D7 – Commissioner will expand the scope of his ruling on when a company ‘carries on a business’ to the substantive law (not just when the 27.5% lower corporate rate applies)

The staged introduction of the 27.5% lower rate of company tax began on 1 July 2016, using a ‘carrying on business’ test, probably intending it to exempt companies receiving ‘passive’ investment income. That, however, hit headwinds, when the Commissioner started making his views known in a form that he later issued as TR 2017/D7. The…

SA: Budget Measures Bill 2017 – Legislative Council votes to remove bank levy but House of Assembly disagrees

The SA Legislative Council has voted to strike out the bank levy from the Budget Measures Bill 2017 (SA). Schedule 1 of the Bill had sought to introduce a major bank levy from 1 July 2017 and would have applied to all authorised deposit-taking institutions (ADIs) that offer services in South Australia and were liable for the…

Vic taxes: State Taxation Acts Further Amendment Bill 2017 – Congestion Tax exemption; foreign purchaser additional duty; first home buyer duty concession; absentee owners land tax surcharge; land tax exemption; payroll tax exemption for training organisations

On 31 October 2017, the Victorian Government introduced the State Taxation Acts Further Amendment Bill 2017 into the Victorian Legislative Assembly and was read a second time the following day. It will amend various taxing statutes, in the ways and from the commencing dates set out below. Part 2, which amends the Congestion Levy Act…

Class Ruling CR 2017/74 – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares

On Wed 1.11.17, the ATO  issued Class Ruling CR 2017/74 (Spicers Ltd – CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares). The Ruling discusses the CGT consequences of CGT event A1 happening when unitholders of PaperlinX SPS Trust exchanged their units for ordinary shares in Spicer Ltd. DATE…

TD 2017/22 Addendum – Foreign equity distributions to corporate beneficiaries can hold a can “hold” a direct control interest in a foreign company and a corporate beneficiary can have a 10% ‘participation’ interest – but not until year end when the income entitlement arises

On Wed 1.11.17, the ATO issued an Addendum to Determination TD 2017/22. The Determination provides that a trust  for the purpose of the foreign equity distribution rules in Subdiv 768-A of the ITAA 1997. Accordingly, the ATO accepts that a corporate beneficiary can have a participation interest in the foreign company for the purpose of…

SMSF property investments service provider pleads guilty to dishonesty obtaining client money and knowingly dealing with the proceeds of crime – refused bail, awaiting sentence in June 2018 and in jail for other offences

Following an ASIC investigation, Ms Sarah Jane Busteed, of Sydney, pleaded guilty on 23 October 2017 in the New South Wales District Court to two charges that she dishonestly obtained client funds and to one charge of dealing with over $100,000 of client funds that were the proceeds of crime. Ms Busteed admitted her guilt…