Practice Statement PS LA 2018/1, issued on Thurs 18.10.2018, sets out the factors that ATO staff may need to consider when forming an opinion as to whether an SMSF auditor: is not a fit and proper person to be an approved SMSF auditor; has contravened the SIS Act or SIS Regs in conducting an SMSF audit; or…
The NSW District Court has rejected a director’s defences to a director’s penalty notice (DPN) for $111,798. The defendant was the director of a construction company, formed in April 2015. Its activities were mainly conducted in Western Australia. The company lodged BASs in respect of the periods 1 April 2015 to 30 June 2015 and 1 July 2015 to 30 September 2015. The BASs identified…
Practical Compliance Guideline PCG 2018/7, issued on Thursday 25.10.2018. It sets out the ATO’s compliance approach to restructures out of existing hybrid arrangements to avoid the potential application of the hybrid mismatch rules. The anti-hybrid rules, will generally take effect from 1 January 2019, and they address certain hybrid arrangements that exploit differences in the tax treatment…
On 22 October 2018m, the Assistant Treasurer, the Hon Stuart Robert MP, released a consultation paper seeking views on the proposed implementation of the amendments to Division 7A of the Income Tax Assessment Act 1936 (ITAA36). He said the proposed amendments drew on recommendations from the Board of Taxation and will provide clearer rules for taxpayers…
The Inspector-General of Taxation (IGT), Mr Ali Noroozi, has announced the release of his report into the ATO’s fraud control management. The review arose because of the concerns surrounding Operation Elbrus (a major phoenixing operation conducted by the son of a senior tax officer), including allegations of tax fraud that may be associated to abuse of position…
The AAT has upheld superannuation Division 293 tax assessments against a former Vice President of the Australian Industrial Relations Commission (AIRC) after ruling that he was not a “judge” for the purposes of the exemption under s 293-190 of the ITAA 1997. The taxpayer, the Hon Graeme Watson, is a former Vice President of the Australian…
The Inspector-General of Taxation released its 2017-18 Annual Report on 18 October 2018. The Inspector-General, Ali Noroozi, confirmed that this would be his last Annual Report, following his decision not to seek another term. The themes in the Annual Report included the following. The creation of the IGT in 2003 to investigate systemic problems in the ATO –…
A taxpayer has been unsuccessful in contesting GST assessments, relating to the sale of 4 properties. They imposed $265,296 of GST plus substantial further amounts of shortfall penalties, before considering, also, interest based penalties. The facts were these: The taxpayer bought 2 existing terrace properties (Lots 1 & 2) in 2001 – one used commercially…
ASIC has assisted employees gain access to the Government’s ‘Fair Entitlements Guarantee scheme (Entitlements Scheme) by exercising its wind-up powers and appointing liquidators to 17 abandoned companies in the 12 months to 30 September 2018. Because ASIC appointed the liquidators, employees of these 17 companies can now apply to recover owed unpaid employee entitlements. The 17 abandoned…
On 20.9.2018, the Government introduced the Treasury Laws Amendment (2018 Measures No. 5) Bill 2018 in the House of Representatives, where it sat until debated and passed on 17 October 2018 (and it moved to the Senate the next day). It proposes the following amendments: AMIT technical amendments – would amend the TAA, ITAA 1997, ITAA…