Tax Month – January 2015

M o r g a n’ s   T a x   M o n t h

– January 2015 Developments –

This is a collection of developments in Australian tax law and practice that occurred in January 2015 and which aims at being of relevance to tax lawyers.*

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

Liability limited by a scheme approved under Professional Standards Legislation

Table of Contents

________________________________________________________________________

 

ACTS, BILLS AND ANNOUNCEMENTS

 

Acts & Bills

Resource project realignment and farm-out: exposure draft legislation released [1]

*Taxation of employee share schemes – draft legislation released [2]

 

Announcements

Government announces simplification of tax and super reporting obligations by the introduction of ‘Single Touch Payroll’ system from July 2016 [3]

*New Assistant Treasurer: Josh Frydenberg [4]

*‘Look-through’ investors in instalment warrants and instalment receipts will be treated as the owner of the asset: draft legislation released [5]

*IGT’s review of valuation issues in tax law – Assistant Treasurer releases his report [6]

*Edmonds J – tax “sacred cows” should be on the tax reform table [7]

 

 

CASES AND APPEALS

High Court
[ – ]

 

Full Federal Court

*Albrecht & Ors v FCT – Super surcharge and WA police officers – appeals partly allowed [8]

*Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT – trustee ‘resettled’ land it owed to a ‘joint venture trust – CGT event E1 [9]

 

Federal Court

*Seven Network Limited v FCT – Payments for Olympic Games broadcasting rights were not ‘royalties’ and no withholding were required [10]

*Kocharyan v FCT – deductions denied for share in partnership losses from investment in a MIS forestry scheme – ‘scheme benefit’ [11]

 

Administrative Appeals Tribunal (AAT)

*Confidential v Commissioner of Taxation – beneficiaries of unit-holding trusts assessable on UT capital gain – small business CGT concessions relevant [12]

*Confidential and Commissioner of Taxation – No foreign tax offset for Irish ‘Pay Related Social Insurance’ – not a “substantially similar tax” [13]

*Re The Engineering Manager and FCT – Taxpayer visited his family when of leave from 7 years overseas – not resident for the whole year he returned [14]

*Re Raschta Coatings Pty Ltd as trustee for the Raschta Coatings Trust and FCT – assessments excessive though records lost in Brisbane floods [15]

 

Other Courts & Tribunals
[ – ]

 

Appeals

*John Holland Group Pty Ltd & Anor v FCT – Taxpayer appeals FBT ‘otherwise deductible’ decision on ‘fly in – fly out’ expenditure [16]

 

 

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

*MBI Properties Pty Ltd v FCT – GST: whether purchaser of land subject to a lease continues to make supplies to the lessee? [17]

Re GHP 104 160 689 PTY LTD v FCT – ‘feedstock expenditure’ allowed under R&D provisions – not ‘overlapping expenditure’ [18]

 

Rulings
[ – ]

 

Determinations

TD 2015/1 – PSI: payments from service acquirers when no service is provided [19]

 

Class Rulings & Product Rulings

Class Rulings and Product Ruling – 14.1.15 [20]

Class Rulings – 28.1.15 [21]

 

ATO Interpretive Decisions (ATOIDs)

*ATO ID 2015/1 – FBT – work-related counseling under worker retraining program [22]

ATO ID’s – Superannuation: journal entry insufficient to constitute ‘payment’ and death benefits must be “cashed” upon death [23]

 

Practice Statements

*PS LA 2015/1 – ATO Code of settlement [24]

 

Tax Alerts

[ – ]

 

Other ATO news or statements

*Separate ATO area to manage disputes (ATO agrees); Tech/Digital risk reviews; ECAP pilot started; Statutory Remedial Power concept finalised [25]

*Revenue asset and trading stock roll-overs – same as CGT for business restructure – ATO administrative treatment [26]

 

 

GST DEVELOPMENTS

 

Legislation & Announcements (GST)
[ – ]

Cases (GST)

Re Raschta Coatings Pty Ltd as trustee for the Raschta Coatings Trust and FCT – GST and income tax assessments excessive: company wins appeal [27]

 

Rulings, Determinations & Other things (GST)

*GSTD 2015/1 – GST and supply of brokerage services for overseas purchases is GST-free [28]

*GSTR 2009/3 & GSTD 2012/4 Addenda – GST treatment of ‘cancellation fees’ and hospital treatment’ for s38-20 GST-free purposes [29]

 

 

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

[ – ]

 

Cases (Super)

*Albrecht & Ors v FCT – Super surcharge and WA police officers – appeals partly allowed [30]

*Olesen v Early Sunshine Pty Ltd & Ors – Pecuniary penalties imposed on directors of super fund trustee [31]

 

Rulings & Other things (Super)

*Phoenix operators prevented from avoiding SGC liabilities by ATO using new powers – SG Estimates and Director Penalties [32]

 

 

AUSTRALIAN CHARITIES & NOT-FOR-PROFITS (ACNC) SECTOR

*ACNC revokes status of further 392 charities [33]

 

 

BOARD OF TAXATION

Small Business tax reforms recommended – report by Board of Taxation [34]

 

 

EXTERNAL SUPERVISORS – IGT; OMBUDSMAN, JCPAA & ANAO

*IGT’s review of valuation issues in tax law – Assistant Treasurer releases his report [35]

 

 

TAX PRACTITIONERS BOARD & LEGISLATION

Tax (financial) advisers – TPB gives guidance of the ‘sufficient number’ requirements and on what constitutes a fee or other reward [36]

Tax (financial) advisers: registration requirements – sufficient and relevant experience: TPB [37]

Tax (financial advisers) need appropriate education levels: Institute of Public Accountants [38]

Re Mahaffy and the Tax Practitioners Board – tax agent has appealed to the Federal Court (whilst stay on not renewing registration continues) [39]

 

 

STATE TAXES

Legislation & Announcements (State)

NSW payroll tax: rebate under Fresh Start Support – reg made [40]

 

Cases (State)

ACT land tax: Wade & Anor v Comr of ACT Revenue – remission of penalty tax [41]

NSW land tax: Delmege & Anor v Chief Comr of State Revenue – intended PPR land tax exemption refused [42]

NSW land tax: Delli-Carpini & Ors v Chief Comr of State Revenue – primary production exemption refused [43]

Qld stamp duty: Rawlings & Ors v Comr of State Revenue – no aggregation for transfer of properties [44]

Vic land rich provisions: Schachna v Comr of State Revenue – 2007 service of assessment not refreshed by 2014 demand for payment with assessment [45]

 

Rulings & Other (State)

Qld Land Tax: OSR to contact landholders with a land tax exemption [46]

SA: Emergency Services Levy remission – retirement villages: Revenue Ruling [47]

SA stamp duty: conveyance by direction; sale of a business – Revenue Rulings [48]

SA FHOG: relief for Australian Defence Force personnel applying for Grant – Revenue Ruling [49]

 

 

OTHER DEVELOPMENTS
[ – ]

 

 

THE END
_______________________________________________________________________________