T a x T e c h n i c a l – M o n t h l y N e w s
– February 2018 Developments –
This is a collection of developments in Australian tax law and practice that occurred in February 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
- Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 passes Lower House – providing remaining 8 years of Government’s reduction in tax rates – down to 25% for all companies
- Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – 80% passive income test (to retain 30% tax/franking rate) passes Lower House with one Government Amendment
- Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 – 3 CGT changes – excluding non-residents from ‘main residence’ exemption; avoiding double counting for Div 855 ‘principal asset’ test; additional 5% discount for ‘low cost housing’
- Treasury Laws Amendment (2018 Measures No 2) Bill 2018 – various amendments to the requirements for venture capital tax concessions – Early Stage VCLP and ‘Early Stage Innovation Companies’
- Draft Treasury Laws Amendment (Measures # ??) Bill 2018 – Small Business CGT concession ‘integrity’ measures, on sale of shares or units: ‘see through’ active assets test; new taxpayer requirement; new ‘object entity’ requirement (to carry on business)
- Draft legislation to give legal effect the ‘Multilateral Instrument’ in Australia – Amendment to International Agreements Act to include the MLI like any other bi-lateral agreement
- Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 – proposing 6 measures: the ‘deductible liabilities measure’; the ‘deferred tax liabilities measure’; the ‘securitised assets measure’; the ‘churning measure’; the ‘TOFA measure’ and the ‘value shifting measure’
- Treasury Laws Amendment (MAAL extension) Bill 2018: draft legislation to catch supplies made by Australian trusts and partnerships which are linked to a ‘foreign entity participants’
Announcements
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BASE EROSION & PROFIT SHIFTING (BEPS)
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CASES AND APPEALS
High Court
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Full Federal Court
Federal Court
- Cassaniti v CofT – employee entitled to credits for PAYG amounts “withheld” from her salary or wages, despite her employers not remitting the withheld amounts to the ATO
- Resource Capital Fund IV LP v CofT – US private equity funds, structured as Caymans limited partnerships, not taxed on profit from sale of shares in Australian Lithium mining and processing company
Administrative Appeals Tribunal (AAT)
- Walsh v CofT – DPO issued against taxpayer set aside after he petitioned for his own bankruptcy (leading to a discharge of the tax debt)
- Coventry v CofT – DFAT employee’s overseas earnings exempt from Australian tax, under s23AG, because diplomatic immunity was not ‘the only’ reason for no Pakistani tax
Other Courts & Tribunals
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Appeals
COMMISSIONER’S PUBLICATIONS & NEWS
Decision Impact statements
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Rulings
Determinations
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Law Companion Rulings
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Class Rulings & Product Rulings
ATO Interpretative Decisions
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Practice Statements
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Practical Compliance Guides
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Tax Alerts
Other ATO news or statements
- ATO’s Statement on Corporate Tax Compliance – it assures is under control because of strengthened legislation (BEPS initiatives) and enhanced compliance efforts and focus
- Edited versions of ‘private binding rulings’ now available on the ATO Legal database – to make them easier to find and search
GST DEVELOPMENTS
Legislation & Announcements (GST)
Cases (GST)
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Rulings, Etc. (GST)
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SUPERANNUATION DEVELOPMENTS
Legislation, Announcements etc. (Super)
Cases (Super)
Rulings & Other things (Super)
- ASIC approved SMSF auditors – ATO identifies problem areas: (1) auditing your own accounts; (2) auditing relatives’ funds; (3) low cost audits; (4) CPD compliance
- SMSF auditor in NSW – disqualified by ASIC for breach of auditor independence requirements
- Superannuation rates and thresholds for 2018-19 – indexed by latest AWOTE figures from the ABS
AUSTRALIAN CHARITIES & NOT-FOR-PROFITS (ACNC) SECTOR
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BOARD OF TAXATION
EXTERNAL SUPERVISORS – IGT, JCPAA & ANAO etc.
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TAX PRACTITIONERS BOARD & LEGISLATION
STATE TAXES
Legislation & Announcements (State)
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Cases (State)
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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’.