T a x T e c h n i c a l – M o n t h l y N e w s
– April 2018 Developments –
This is a collection of developments in Australian tax law and practice that occurred in April 2018
which aims to be relevant to tax practitioners.[i]
Compiled By
F John Morgan
A member of the Victorian Bar (www.FJMtax.com)
Table of Contents
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ACTS, BILLS AND ANNOUNCEMENTS
Acts, Bills & Draft Legislation
Announcements
- Stapled structures – Integrity measures package announced – with a detailed document
- 2018-19 Budget – Treasurer abandons extra 0.5% Medicare Levy (stay at 2.0%) and flags other tax cuts to keep Federal taxes under 23.9% of GDP
- ABS 2016/17 Australian tax statistics – Income tax largest (33% of total taxes) and fastest growing at 6.0%
- CPI for March 2018 quarter increased 0.5 over the December 2017 quarter (inflation 1.9% for the full year) – relevant for FBT
BASE EROSION & PROFIT SHIFTING (BEPS)
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CASES AND APPEALS
High Court
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Full Federal Court
Federal Court
- DCT v Josway Hospitality Pty Ltd – Winding up order set aside because of s160(1) ‘doubt’ that the posted ‘statutory demand’ arrived – accountant’s affidavit pivotal
- CofT v International Indigenous Football Foundation Australia Pty Ltd – ‘promotor penalties’ for R&D ‘tax exploitation schemes’ – company and director ‘contravened’ and $4.25m in civil penalties (interesting circumstances)
- Stojic v DCT – director fails in action to ‘judicially review’ the Commissioner’s decision to refuse payment (of DPN liabilities) by instalments – no need to give director notice of a need for security
Administrative Appeals Tribunal (AAT)
- PSJF v CofT – Deductions for $37k of employee photographer’s work-related expenses denied in the absence of requisite substantiation and doubts about underlying deductibility
- MMFT v CofT – Taxpayer fails on 3 default assessments & the 75% ‘failure to lodge’ penalty – PSI, PAYGw, Rental Losses, Motor Vehicle deductions, flight deductions, phone/internet
Other Courts & Tribunals
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Appeals
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COMMISSIONER’S PUBLICATIONS & NEWS
Decision Impact statements
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Rulings
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Determinations
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Law Companion Rulings
Class Rulings & Product Rulings
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ATO Interpretative Decisions
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Practice Statements
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Practical Compliance Guides
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Tax Alerts
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Other ATO news or statements
- Four Corners and Fairfax story of various alleged ATO abuses – one being an ATO whistle blower, his treatment, whether the new ‘whistleblower’ Bill would have helped
- ATO’s Superannuation Clearing House has experienced delays in processing contributions – SG and Fair Work assurance to affected employers
GST DEVELOPMENTS
Legislation & Announcements (GST)
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Cases (GST)
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Rulings, Etc. (GST)
SUPERANNUATION DEVELOPMENTS
Legislation, Announcements etc. (Super)
Cases (Super)
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Rulings & Other things (Super)
- ASIC updates guidance on AFS licensing requirements for accountants (Tax & BAS agents) who give advice about SMSFs (Self-Managed Superannuation Funds)
- SMSF Association’s Statement regarding disciplinary proceedings against financial planner: Sam Henderson for potential $500k loss from his advice – exposed in Banking Royal Commission
AUSTRALIAN CHARITIES & NOT-FOR-PROFITS (ACNC) SECTOR
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BOARD OF TAXATION
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EXTERNAL SUPERVISORS – IGT, JCPAA & ANAO etc.
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TAX PRACTITIONERS BOARD & LEGISLATION
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STATE TAXES
Legislation & Announcements (State)
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Cases (State)
Rulings & Other (State)
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OTHER DEVELOPMENTS
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[i] Sources – abbreviations: ‘ATOlpr’: ATO Legal Professions Relationships emails; ‘IT’: Inteliconnect Tracker (CCH); ‘LCA’: Law Council of Australia; ‘LTN’: Latest Tax News (Thomson Reuters); ‘Sievers’: Chris Sievers’ GST post (www. http://chrissievers.com); ‘TBA’: Tax Bar Association Newsletter; TX: Tax Week (Thomson Reuters); ‘Vine’: The Tax Institute’s ‘Tax Vine’.