Category Archives: Tax Month – November 2018

ACNC – standards made for ‘registered entities’ operating outside Australia – activities consistent with its charitable purpose; obey Australian Laws; no fraud or bribery; protect vulnerable people

The Australian Charities and Not-for-profits Commission Amendment (2018 Measures No. 2) Regulations 2018 were registered on the Federal Register of Legislation on Mon 26.11.2018. It amends the Australian Charities and Not‑for‑profits Commission Regulation 2013. These Amending Regulations are made under s50-10 of the Australian Charities and Not‑for‑profits Commission Act 2012, which allows regulations to be prescribed setting out ‘external…

NSW payroll tax system – Government’s response to Productivity Report announced – accepting all 12 recommendations including: three-tiered payment, lodgement and reconciliation model, 50% prompted voluntary compliance discount, efforts to standardise definitions and forms

On 22.11.18, the New South Wales Treasurer announced a reform to the administration of payroll tax in NSW that could seriously reduce compliance costs. He announced: from next year payroll tax administration will be streamlined with the introduction of equal automated payments making payroll tax a set-and-forget affair, rather than a monthly hassle He also…

Exchange of Information Countries – 54 added by new regulation – giving lower 15% MIT withholding tax rights (most added through the MLI process)

The Taxation Administration Amendment (Updating the List of Exchange of Information Countries) Regulations 2018 (the Updating Regulations) were registered on 23.11.18 and have effect from the following day (24th Nov 2018). They add: Albania, Andorra, Austria, Azerbaijan, Bahrain, Barbados, Brazil, Brunei, Bulgaria, Cameroon, Chile, Colombia, Costa Rica, Croatia, Cyprus, Dominica, Estonia, Faroe Islands, Georgia, Ghana,…

PCG 2018/D8 – ‘swim between the flags’ compliance guidance for related party, inbound, distributors – eg. general distributors: EBIT above 5.5% of sales, motor vehicle distributors: EBIT above 4.3% of sales

On 23.11.18, the ATO released Draft Practical Compliance Guideline PCG 2018/D8 – Transfer pricing issues related to inbound distribution arrangements. It outlines the ATO’s intended compliance approach (or the amount of audit attention, they will apply ) to the transfer pricing outcomes associated with the following activities of inbound distributors: distributing goods purchased from related…

‘Black economy’ – further consultation paper released on: further penalties; reverse onus of proof; record keeping for gambling & gifts; penalties for misrepresenting ‘sham’ contracts, ATO law enforcement agency; Freezing Order extension; ATO compel 3rd party info; Federal Courts hear offence matters

On 22.11.18, the Assistant Treasurer announced the release of consultation paper released today is another step towards implementing the Government’s response to the recommendations of the Black Economy Taskforce final report. This consultation comes in the context of the review that the Government announced, as part of the 2018-19 Budget, it would conduct, of existing criminal…

Early release of superannuation benefits – further consultation paper issued seeking feedback on 5 measures to widen the grounds (including ‘domestic violence’) and 8 measures to tighten the tests

On 21.11.18, the Assistant Treasurer announced the release of a further consultation paper on changes to the early release rules for superannuation.  (This follows Minister O’Dwyer’s announcement in Dec 2017; a consultation paper issued on 20.1.2.17; a victims of crime consultation paper issued on 28 May 2018; and Minister O’Dwyer’s Nov 2018 announcement relating to…

Victims of Family and Domestic Violence will be permitted access to their superannuation early and ATO will be able to share information with the Family Court (about parties’ superannuation)

On 20.11.18, Minister for Women: Kelly O’Dwyer announced that the Government move to change the law so that: victims of family violence could get early access to their superannuation money; and it will improve the visibility of super assets in family law proceedings. These measures were included in the broader financial support package for women…

BHP’s Singapore Marketing Hub – ATO & BHP settle long running 2003 – 2018 transfer pricing dispute with additional $529m, ownership lift of Hub to 100% and future transfer pricing in ‘green zone’ for hubs: PCG 2017/1

On 19.11.18, both BHP and the ATO announced that they had settled their long-running dispute on the proper tax treatment of the price at which the Australian company sold it’s ore to the Singapore ‘marketing hub’ (in other words, a transfer pricing issue). They key matters disclosed about the settlement, are as follows (remembering that…

OECD releases latest BEPS Action 5 report on preferential regimes and moves to strengthen the level playing field by applying the ‘substantial activity’ requirements to the ‘no or low tax’ jurisdictions

On 15/11/2018, the OECD reported international efforts to curb harmful tax practices and prevent the misuse of preferential tax regimes are having a tangible impact worldwide, according to new data it release at that time. The latest progress report, from the 115 nation Inclusive Framework on BEPS, covers the assessment of 53 preferential tax regimes, demonstrating…

J5 Alliance (Australia, Britain, Canada, Netherlands and USA) targets “professional enablers” of international tax fraud – see who advertises; follow (show me) the money

On 15.11.18, Reuters reported that Tax enforcement agencies from the United States, Australia and 3 other countries, part of the J5 alliance, are leading a crackdown on “professional enablers” of international tax fraud, the US Internal Revenue Service head of criminal investigations has said. The IRS, via an alliance with Britain, Australia, Canada and the Netherlands…