Tax Month – April 2021

T a x  T e c h n i c a l  –  M o n t h l y  N e w s

– April 2021 Edition –

‘Tax Developments’ for tax practitioners by a tax practitioner.

 

Compiled by F John Morgan
A member of the Victorian Bar (www.FJMtax.com)

Table of Contents

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Legislation

Acts & Bills

• JobMaker – Instrument allowing alternative means to report necessary information (other than through STP)

Announcements & Drafts

• New Zealand attacks property ‘bubble’ with tax measures – comparisons with Australia

Cases

High Court

• —

Full Federal Court

• Coal of Queensland Pty Ltd v Innovation and Science Australia – R&D: surveys and drilling activities by coal miner not ‘core R&D activities’ or ‘supporting R&D activities’ – appeal dismissed

Federal Court

• —

Administrative Appeals Tribunal (AAT)

Other Courts & Tribunals

• —

Appeals

• —

Rulings

Decision Impact statements

• Cof T v Apted (Retrospective ABN start date JobKeeper decision) – ATO issues Decision Impact Statement accepting thrust of decision and amending PS LA 2020/1 accordingly

Rulings

• —

Determinations

• —

Law Companion Rulings

• —

Class Rulings & Product Rulings

• —

ATO Interpretative Decisions

• —

Practice Statements

• Cof T v Apted (Retrospective ABN start date JobKeeper decision) – ATO issues Decision Impact Statement accepting thrust of decision and amending PS LA 2020/1 accordingly

Practical Compliance Guides

• PCG 2021/D2 on allocation of professional firm profits (ATO stance on ‘income splitting’ etc.) – LCA submission as part of ‘consultation’
• PCG 2021/D2 – ‘Allocation of professional firm profits’ – Professional Bodies make submissions to ATO consultation process (taxpayers corralled too narrowly)

Tax Alerts

• —

Other ATO news or statements

• PAYG obligations for remediation payments made by financial institutions following the Hayne Banking Royal Commission – how might PAYG arise?
• ‘Client identity verification’ will become mandatory, after a voluntary phase-in, for ‘Tax Practitioners’ dealing with the ATO – Consultation Paper proposes guidelines
• Illegal “phoenix” activity – 62 year old charged with dishonestly arranging for insolvent entities to incur $850 of PAYGw which was not paid to the ATO
• ‘Temporary full expensing’ and ‘Backing business investment’ – ATO Schedule for Substituted Accounting Period (SAP) taxpayers or lodging a part year tax return

GST 

Legislation & Announcements (GST)

• —

Cases (GST)

• —

Rulings, Etc. (GST)

• —

Superannuation

Legislation etc. (Super)

• Budget super reforms introduce ‘sovereign risk’ into the $3t super industry – how could that be so?
• ‘Your Future, Your Super – Exposure Draft of Amending Regs to effect – Single Default Accounts, Underperforming funds disclosure & sanctions, improving accountability at annual members’ meetings etc.

Cases (Super)

• Merchant v CofT – decision to disqualify SMSF trustees – AAT would not defer the review until after tax objections relating to the same transaction were determined

Rulings etc. (Super)

• Superannuation: Excess non-concessional contributions cap ($110k) – ATO post explaining options and procedures

State Taxes

Legislation & Announcements (State)

• —

Cases (State)

• —

Rulings & Other (State)

• The 2021 Victorian land tax relief application deadline – 30 June 2021

Other Developments

Australian Charities & Not-for-Profits Commission (ACNC)

• —

Base Erosion & Profit Shifting & OECD

• Lowering our 30% corporate tax rate for large taxpayers, down to the 25% rate for SMEs supported by OECD and tax advisers

Board of Taxation

• Board of Taxation – new interim CEO issues her April 2021 Update

Inspector General and other external supervisors

• —

Miscellaneous

• Janet Yellen decries the global tax ‘race to the bottom’ on Corporate Taxes – Don’s 21% to be replaced with Joe’s 28% to fund a belated COVID $3t stimulus package
• Corporate Tax Residency – Professor Stewarts paper, from De Beers through to adoption of the Board of Tax’s recommendation
• Instrument to extend Director ID transition period, for new directors, to match existing directors – 4 Nov 2021 to 30 Nov 2022

Tax Articles

• —

Tax Practitioners Board

• Birdseye v Tax Practitioners Board – Board’s de-registration decision upheld (non-compliance with personal affairs) but 5-year ban set aside (ATO/TPB findings largely rejected)