Category Archives: Tax Month – November 2019

TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets – the Commissioner ventures the ‘brave’ view they are capital in nature (and not a ‘general deduction’)

On 21.11.19, the Commissioner released TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets, seeking comments on the draft by 14 February 2020. This is a stunningly important draft ruling as it seeks to turn wages into a capital expense, by looking beyond the advantage sought (to pay for inherently ephemeral labour) to…

Research and Development tax incentives leave Australia near the bottom of the pile for national R&D spend – one idea about what’s to be done

On 22 Nov 2019, the Tax Institute published and article, in their weekly TaxVine (45; 22.11.19) by their Senior Tax Counsel: Bob Deutsch CTA, entitled: Research and development – a new way forward. In his article, he survey’s the effectiveness of Australia’s existing incentives, compares their success, with other parts of the world and suggests a…

Probin and FCT – Super Guarantee payable for property maintenance worker – whose work was too closely controlled by the taxpayer

On 8 Nov 2019, the AAT decided that a worker, engaged by a property maintenance business, was an employee (and not an independent contractor). See below for a summary of the case. [Tax Month – November 2019]  

Frugtniet v Tax Practitioners Board – Termination of tax agent’s registration (for 5 years) upheld by the Full Federal Court

On 11 November 2019, the Full Federal Court dismissed an appeal by a tax agent, and confirmed the TPB’s decision, to terminate his registration, on the grounds he was not a “fit and proper person”. The decision also precludes the tax agent from applying for re-registration for 5 years. See below for a summary of…

Bluescope Steel (AIS) Pty Ltd v Australian Workers’ Union – DIS on the meaning of ‘ordinary times earnings’ and ‘ordinary hours of work’ for SGC purposes – whether the ‘additional hours component’ and the ‘public holidays component’ included

On 11 November 2019, the Commissioner issued his ‘Decision Impact Statement’ (DIS) on this case, which was about the meaning of ‘ordinary time earnings’ and ‘ordinary hours of work’ as used in the Superannuation Guarantee (Administration) Act 1992 (SGAA). See the related Tax Technical article about the SGC impact of the first instance decision. See below…

OECD Global Anti-Base Erosion (GloBE) Proposal under Pillar Two – a right to “tax back” – secretariat invites submissions by 2 Dec and a meeting on 9 Dec 2019

08/11/2019 – As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS, the OECD secretariat is seeking public comments on certain aspects of the Global Anti-Base Erosion (GloBE) Proposal under Pillar Two. See below for the media release. [Tax Month – November 2019]

Whistleblower protection for Tax and BAS Agents – Tax Practitioners Board gives guidance

On 11 November 2019, the Tax Practioners Board (TPB) posted an article about the protection Tax and BAS agents have, under new Whistleblower laws that commenced on 1 July 2019 – though they note that disclosures to the TPB are not protected. And, neither, is a disclosure to the Inspector General of Taxation (see related…

ASIC guidance on companies’ whistleblower policies due by 1 Jan 2020 (RG 270) and relief to small not-for-profits and charities (sub-$1m revenue)

On Wednesday 13 November 2019, ASIC posted Media Release 19-308MR – ASIC gives guidance on companies’ whistleblower policies and relief to small not-for-profits – relating to the ‘whistleblower’ protections that have been effective from 1 July 2019, and the whistleblower policies that must be in place by 1 January 2020. See below for the Media Release. [Tax…

Lordianto v AFP; Kalimuthu v AFP – High Court upholds ‘Proceeds of Crime’ orders for money laundering offences

On Wednesday, 13 November 2019, the High Court rejected the appeal, of two cases of ‘cuckoo-smurfing’. The Australian Federal Police (AFP) were granted orders under s 19 of the Proceeds of Crime Act 2002 (POC Act) restraining any dealing with the bank accounts. The appellants applied to have their interest in the bank accounts excluded from the…

Reid v CofT – Deductions denied for $72k work-related car expenses and $34k of work-related home office and other expenses (failure to substantiate)

On 12 November 2019, the AAT denied a taxpayer’s claims for $72,000 in work-related car expenses and $34,000 in work-related home office and other expenses, on the basis that they were not relevantly ‘substantiated’. See below for a summary of the case. [Tax Month – November 2019]