Royal Wins Pty Ltd v Innovation and Science Australia – R&D activities not core activities – inadequate documentation

On 30 Oct 2020, the AAT determined that a taxpayer was unable to show that certain R&D activities were core R&D activities for income tax purposes, as there was no relevant contemporaneous documentation to establish that any relevant hypothesis had been developed or tested.

See below for further details.

[Tax Month – October 2020]

Cooper & Oxley Builders Pty Ltd (in admin) atf Cooper & Oxley Builders Unit Trust v CofT – GST: company entitled to input tax credits rather than administrator

On 30 October 2020, the AAT has held that a company was entitled to claim an input tax credit for an acquisition that was made before it was put into administration, even though the related tax invoice had been paid by the administrator.

See below for further details.

[Tax Month – October 2020]

Treasury releases draft miscellaneous tax and super amendments – ‘arms-length rules’, TOFA, Debt-Equity, Part IVC, TASA, segregated pension assets, SGC minima, early release NZ residents, super accounts in time to be audited

On 21 October 2020, Treasury has released exposure draft legislation and regulations proposing minor and technical amendments to certain tax, superannuation and corporations laws. The formal purpose of the amendments is “to ensure the law operates as intended by correcting technical or drafting defects, removing anomalies and addressing unintended outcomes”. See below for further details.…

Treasury Laws Amendment (2020 Measures No. 4) Bill 2020 introduced – Electricity large-scale generation certificate refunds are NANE’ and SCT to AFCA transition measures

The Treasury Laws Amendment (2020 Measures No 4) Bill 2020 was introduced into the House of Reps on 28 October 2020. It contains measures to render certain regulatory refunds, to electricity retailers, of a shortfall charge paid, in lieu of surrendering ‘large-scale generation certificates’, non-assessable and non-exempt (NANE). It also has measures to assist in the transition…

Multi-lateral Instrument (MLI) – ATO updates its webpage for latest Synthesised Text for ‘covered’ DTAs

The ATO has a page on its website dealing with the Multi-lateral Instrument (MLI) – introduced by the OECD ‘base erosion and profit shifting’ (BEPS) initiative to quickly change bi-lateral ‘double tax agreements’ (DTA‘s) around the world to deal with various tax issues as they arise. They last modified this page on 22 October 2020,…

Federal Budget 2020 – Economic Stimulus through a Gender Lens: Why the Budget Did Not Deliver

Women have been highly critical of the male dominated focus of the 2020-21 Federal Budget. Although the Budget Speech acknowledged that women were disproportionately affected by the economic consequences of the COVID-19 pandemic, the fiscal stimulus measures were directed primarily to those areas of the economy that will benefit men. See below for further details.…

Greensill to be heard in Full Federal Court concurrently with the appeal by N & M Martin – assets not ‘taxable Australian property’ distributed to non-resident beneficiary still subject to our CGT (under subdivision 115-C)

The appeals against the decisions in Peter Greensill Family Co Pty Ltd v FCT [2020] FCA 559 and N & M Martin Holdings Pty Ltd v FCT [2020] FCA 1186 will be heard concurrently by the Full Federal Court, following orders by the Registrar on 22 October 2020. See below for further details. [Tax Month – October…

Victoria Power Networks Pty Ltd v CofT – Partial victory on ‘uneconomic’ electricity connections – customer cash contributions assessable but customer transferred works not assessable as a ‘non-cash business benefit’

The Full Federal Court has upheld a decision that cash contributions paid to electricity distributors, by customers, were assessable, but overturned a decision that the arm’s length value of connection works transferred to the distributor was assessable.

See below for further details.

[Tax Month – October 2020]