Consultation on proposed amendments to Div 7A – 10 year complying loans; self-correct ‘inadvertent’ breaches; UPE’s brought within Div 7A

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…

Watson v CofT – Super Div 293 tax upheld against AIRC Vice President – legislation giving him the same status as a judge did not make him a judge for the purposes of the s293-190 exemption and did not offend s72(iii) of the Constitution

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…

New Regulation giving business names not registered on ASIC’s national register another 5 years to continue being registered on the ABR (and have an ABN)

The A New Tax System (Australian Business Number) Amendment (Display of Trading Names) Regulations 2018 provides a further 5 year extension of the time, from 1 November 2018 to 31 October 2023, that unregistered  trading names, can remain on the on the Australian Business Register (ABR). These are business names that were on the ABR…

British HRMC change to ‘Statutory Rules Test’ for residency of individuals – notes of Board of Tax Call to HRMC in October 2016 (recently released under FOI)

On 14 September 2018, Treasury released a document, under Freedom of Information law, relating to a Board of Tax Residency call it had with UK HM Revenue and Customs (HMRC) in October 2016 relating to English change to ‘Statutory Rules Test’ for residency of individuals. I have reproduced the document, in full, below, for historical reference. FJM…

TR 2018/6 – Trust vesting – taxation effects: too late to extend after vesting; no E1 event (resolved interests not new trusts); no E5 event until beneficiaries entitled to particular assets

On Wed 15.8.18, the ATO issued Taxation Ruling TR 2018/6, in final form, on the tax consequences of vesting a trust. These views are the same as those contained in Draft TR 2017/D10, although the final ruling includes some fine-tuning. Overview of vesting A trust’s “vesting” or “termination” date, can be the same date but…

Multilateral Instrument (MLI) – OECD BEPS Measure 15 – A round up of relevant international choices and resulting effects – at time legislation introduced into the Australian Parliament

  By Pointon Partners – June 21, 2018 [FJM 22.7.2018] A Bill to enact the OECD BEPS Measure 15 – the Multilateral Instrument (MLI), in Australia: the Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018,  was introduced into our Lower House, on 28 March 2018. At that time the Government hoped that it would become law before the…

ASIC approved SMSF auditors – ATO identifies problem areas: (1) auditing your own accounts; (2) auditing relatives’ funds; (3) low cost audits; (4) CPD compliance

On 26 Feb 2018, the ATO updated their page ‘ ASIC approved auditors of SMSFs (Self Managed Superannuation Funds) which are by far, the greatest number of funds, and which hold a very substantial share of the overall pool of superannuation assets. Approved SMSF auditors do have a critical role in maintaining the health and…

DIS – Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v CofT – ATO accepts FFC decision that the $6.2b Optus buy-back amount was a ‘dividend’ correctly giving rise to the $452m withholding tax

The ATO has issued a Decision Impact Statement on the Full Federal Court decision in Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v FCT [2017] FCAFC 71, which held that an off-market share buy back receipt was a ‘dividend’ to the overseas recipient and that and the withholding tax paid was correctly paid…

SMSF $1.6m ‘transfer balance cap’ reporting – when pre & post 1 July 2017 events and pre-existing income streams must be reported – ATO guidance

Following our announcement on 9 November 2017 on when self-managed super funds (SMSFs) need to report events affecting their members’ transfer balance, we have developed this article you can use as a quick reference guide. The ATO put out this guidance on 5 Dec 2017. Events you need to report You only need to report events…

Carr v CofT – Federal Court refuses to remit the AAT decision on Default Assessments back to the AAT (taxpayer hopelessly unprepared in the AAT)

The Federal Court has dismissed a taxpayer’s claim to have a default assessment matter remitted to the AAT for rehearing. In April 2012, the Commissioner issued default assessments under s167 of the ITAA 1936 to the taxpayer based on his failure to lodge returns in respect of the 2003, 2004, 2005 and 2006 income years. In total,…