Category Archives: Tax Month – October 2014

‘Retroactive’ PI insurance cover required for tax and BAS agents from 1 July 2015: Tax Practitioners Board reminder [63]

The Tax Practitioners Board (TPB) has reminded tax and BAS agents that from 1 July 2015, their professional indemnity (PI) insurance policy must include retroactive cover. Retroactive cover provides insurance for any claims which may arise prior to the start date of the agent’s current policy. The TPB has updated Explanatory Paper TPB(EP) 03/2010 Professional indemnity (PI) insurance (updated…

Tax Practitioners Board’s office is moving to the Sydney CBD [66]

The TPB has advised that it is moving its Sydney office from Hurstville to the Sydney CBD on Friday 31 October 2014. The new postal address is: Tax Practitioners Board, GPO Box 1620, Sydney NSW 2001. The Board says its enquiries line on 1300 362 829 will be unavailable from 12pm (AEDST) on 31 October 2014 and resume at…

Re Frugtniet and Tax Practitioners Board – Tax agent registration termination upheld [65]

The AAT has affirmed the decisions of the Tax Practitioners Board to terminate the applicant’s registration as a tax agent and to preclude him from applying for registration for a period of 5 years from the date of termination. The agent had been registered since 1 January 2010 and sought renewal of his registration in November 2012. The Tax…

Re Burnett – Tax Agent appeals to Federal Court against AAT decision to reject re-registration [64]

A tax agent has appealed to the Federal Court against the decision in AAT Case [2014] AATA 687, Re Burnett and Tax Practitioners Board. The AAT had upheld a Tax Practitioners Board decision and rejected the tax agent’s application for renewal of her registration as a tax agent. [LTN 204, 22/10/14]

Annual reports released: IGT, SCT, Ombudsman, SCT and AAT [62]

The following annual reports have been released and were tabled in the House of Reps on Wed 22.10.2014: Inspector-General of Taxation Annual Report 2013-14. The IGT completed work on: his Transfer pricing review, Base Erosion and Profit Shifting (BEPS) and ATO capability; Risk assessment tools and taxpayer compliance costs; Compliance approaches to small businesses and…

*Re The Trustee for Rane Haulage Trust and FCT – Superannuation guarantee charge: nominal interest component affirmed [61]

The AAT has held that the Commissioner had correctly imposed the nominal interest charge component in relation to amended assessments of superannuation guarantee charge issued to a taxpayer. In April 2013, the Commissioner notified the taxpayer that he proposed to undertake an audit of the taxpayer’s employer obligations. After the audit was completed, the Commissioner made amended…

*DCT (Superannuation) v Graham Family Superannuation Pty Limited – SMSF loans to members: Court approves $50,000 penalty for trustee directors [60]

The Federal Court has approved civil penalties for the trustees of a self-managed superannuation fund (SMSF) totaling $50,000 in relation to loan breaches of the SIS Act. The members of the SMSF were husband and wife directors of the corporate trustee of the fund. Over a 4-year period, the SMSF made 80 loans to the…

*Withdrawing excess non-concessional super contributions: draft legislation [59]

Treasury on Fri 10.10.2014, released for comment draft legislation which proposes to give effect to the 2014-15 Budget proposal to allow individuals the option of withdrawing super contributions in excess of the non-concessional contributions cap made from 1 July 2013 and associated earnings, with these earnings to be taxed at the individual’s marginal tax rate. According to…

GSTD 2014/D4 – GST and supply of brokerage services for overseas purchases [58]

The ATO on Wed 29.10.2014, issued Draft GST Determination GSTD 2014/D4 which states that the supply of brokerage services that facilitate the sale or purchase of financial products on overseas securities or futures exchanges is a GST-free supply under para (a) of item 4 in the table in s 38-190(1) of the GST Act (Item 4).…

GST – Addendum and Withdrawal of Class Rulings and GST Advice [57]

The ATO on Wed 15.10.2014, issued an Addendum to GST Determination GSTD 2013/1 (When a payment for a supply fails, is a failed payment fee charged by the supplier consideration for a supply?). In addition, with effect from Wed 15.10.2014, the ATO withdrew GST Advice GSTA TPP 032 (Can a tax invoice show an amount…