Tax Month – April 2020

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

– April 2020 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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COVID-19 related matters

Acts and Bills

• Coronavirus Payment and Omnibus Bills passed – setting up the headline ‘JobKeeper Payment’ regime and a raft of legislation – some related

JobKeeper Scheme

• JobKeeper Payments Rules: Treasury released ‘exposure draft’ – these rules are where the meat of system will lie (it will be ‘where the action is’)
• ‘JobKeeper Rules 2020’ & accompanying ‘Explanatory Statement’ made 9 April 2020 (available for download)
• JobKeeper scheme: Statutory Rules registered by Treasurer – a summary of the detail in this scheme
• JobKeeper – Alternative ‘decline in turnover’ tests made by ATO ‘determination’ under the Act (the gift that keeps on giving)
• JobKeeper – Amending Regs (No. 2) – Employee Hubs, religious practitioners, overseas aid and other charities and Universities accommodated – ‘one in all in’ principle strengthened
• PCG 2020/4 – JobKeeper: ATO practical guidance on its auditing risk assessment of various schemes – genuine affect of the pandemic is the guide
• ‘JobKeeper’ benefits for the SELF-EMPLOYED – an examination of the requirements in the Rules
• Key JobKeeper Payment updates – ATO

JobKeeper & Cashflow Boost measures

• PSLA 2020/1 – ‘Cashflow Boost’ measure – Commissioner’s guidance on when further time discretion should be exercised for ABN registration or notice of assessable income or taxable supplies

Superannuation

• ASIC exemptions for COVID-19 early release of superannuation – licensing relief for ‘tax agents’ and service relief for licensee’s (Instrument under Corps Act)
• Early release of superannuation – ATO guidance and number of people registering interest (over 880k at 16 April)
• Super Guarantee Amnesty ends 7 September 2020 but COVID payment plans are available
• SIS Regs amended to allow for early release of super for adverse effects of the COVID-19 pandemic
• COVID-19 early release of super: APRA data on first week (600k applications and $1.3b) and PM’s 1.5.20 report (950k applications with $7.9b total)

Land tax & tenancy relief

• Mandatory Code of Conduct for landlords and SME tenants, of commercial properties, to negotiate rent relief over COVID-19 crisis period
• NSW land tax relief to assist negotiating rent relief for SME tenants (of NSW property)
• NSW announces package to protect residential tenants from evictions – 6 month moratorium, 60 day stop
• Victorian Land Tax and Tenancy relief (both residential and commercial) – foreshadowing legislation consistent with the nationally announced ‘Code of Conduct’
• Queensland land tax rebates and ‘leasing principles’ (rent freeze, eviction protection, etc.) – both residential & commercial
• WA – Temporary COVID-19 relief for tenants: commercial and residential and ‘Code of Conduct’ facility (but no land tax relief)

Cross-border implications

• OECD issues guidance on COVID-19 implications on cross-border matters

Other

• ASIC reminds directors their duties still apply despite temporary COVID-19 relief from ‘insolvent trading’

Legislation

Acts & Bills

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Announcements & Drafts

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Cases

High Court

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Full Federal Court

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Federal Court

• Zaghloul v CofT – Lump sum payment of weekly workers compensation assessable
• Mussalli v CofT – Upfront payments to secure rent reduction payable for MacDonalds restaurants held not deductible (on capital account)
• Peter Greensill Family Co Pty Ltd v CofT – Trustee assessed, under s98, on capital gains, distributed to a non-resident, relating to shares that were not ‘taxable Australian property’

Administrative Appeals Tribunal (AAT)

• GDGR v CofT – Army invalidity pension concessionally taxed as superanuation lump sum
• DXGQ v CofT – Transfer Pricing dispute split between the Federal Court and the AAT (on primary tax and penalties) should be heard together
• Donkin & Ors v CofT – Beneficiaries assessable on increase in net income of trust (despite the ‘moving target’ style of trust distribution resolution)

Other Courts & Tribunals

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Appeals

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Rulings

Decision Impact statements

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Rulings

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Determinations

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Law Companion Rulings

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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

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GST 

Legislation & Announcements (GST)

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Cases (GST)

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Rulings, Etc. (GST)

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Superannuation

Legislation etc. (Super)

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Cases (Super)

• Wareham v Marsella – SMSF dispute over trusteeship and death benefit – adult daughter of previous marriage distributes to herself but removed by ‘new’ husband of 30 years

Rulings etc. (Super)

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State Taxes

Legislation & Announcements (State)

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Cases (State)

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Rulings & Other (State)

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Other Developments

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

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Base Erosion & Profit Shifting & OECD

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Board of Taxation

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Inspector General and other external supervisors

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Miscellaneous

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Tax Articles

• Lex Greensill loses $60m tax battle – on Family Trust’s disposal of shares in foreign Greensill Capital shares

Tax Practitioners Board

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