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

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

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



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]




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




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]


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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

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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]





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]




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]




*ACNC revokes status of further 392 charities [33]




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




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




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]




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]



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NB: I have gathered these articles from various sources for the purposes of study and teaching and I have acknowledged the sources. None of this publication should reproduced in breach of copyright belonging to the acknowledged source. The headings to the articles are often mine (and shouldn’t necessarily be attributed to the publisher).

Source Abbreviations: ‘EDTN’ = Electronic Daily Tax News, published by CCH; ‘LTN’ = Latest Tax News published by Thomsons; and ‘Taxvine’ is the weekly publication by the Tax Institute of Australia; Greenfields = Greenfields Financial Services; TaxBar = Melbourne Tax Bar Association Newsletter at www.vicbar.com.au / Members / Bar Associations / Tax