Tax Month – January 2020

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

– January 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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Tax Articles

• Recent Federal and State changes to tax and duty on Property assets – both investors and private use – including the controversial abolition of the ‘main residence’ CGT exemption, for non-residents, with the transitional relief due to expire on 30 June 2020
• The Government’s 2018 announcement to allow ‘early release’ of superannuation to victims of family and domestic violence? – ‘Victim X’ asks: ‘where the bloody hell is it?’ because she needs it NOW

Legislation

Acts & Bills

• Commissioner relaxes his own secrecy restrictions, for deceased estates, by use of his ‘remedial power’

Announcements & Drafts

• DGR status proposed for ‘Men’s Sheds’ and ‘Women’s Sheds’ – draft Bill released – Submissions by 14 February 2020

Cases

High Court

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Full Federal Court

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Federal Court

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Administrative Appeals Tribunal (AAT)

• NGFZ v CofT – AAT largely upholds ATO audit and asset betterment assessments rejecting, amongst other things, claims that amounts received were loans

Other Courts & Tribunals

• DCT v MWB Accountants – ATO fails to recover overpaid GST refunds from the tax agent who lodged incorrect returns then didn’t pass on the refunds to its client

Appeals

• Burton v CofT – taxpayer seeks leave to appeal to the High Court on being denied full foreign tax credits for US tax on a capital gain

Rulings

Decision Impact statements

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Rulings

• ‘Genuine Redundancy Payment’ tax concession ruling updated to cover amendments extending eligibility from age 65 to pension age

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

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Other ATO news or statements

• ATO notice to tax agents – AUSkey closes in nine weeks (late March 2020) – ‘myGovID’ to be the default ‘log in’ from 25 January 2020 for tax agents login page
• Global tax chiefs undertake unprecedented multi-country day of action to tackle international tax evasion – ATO post

GST 

Legislation & Announcements (GST)

• —

Cases (GST)

• ACN 154 520 199 Pty Ltd (In Liq) v CofT – GST and scrap gold scheme: $122 in input tax credits disallowed
• ACN 154 520 199 Pty Ltd (In Liq) v CofT – Taxpayer appeals Gold ‘refining’ GST case to the Federal Court

Rulings, Etc. (GST)

• —

Superannuation

Legislation etc. (Super)

• Financial Accountability Regime will extend ‘BEAR’ to APRA regulated super trustees (RSE licensees) – Treasury proposal paper released – submissions due 14 February 2020

Cases (Super)

• Whitt v Clough Projects – Super contributions for offshore gas worker, “in accordance” with the SGC law, were limited to ‘maximum contribution base’ earnings (after which there is no SG charge)

Rulings etc. (Super)

• The Government’s 2018 announcement to allow ‘early release’ of superannuation to victims of family and domestic violence? – ‘Victim X’ asks: ‘where the bloody hell is it?’ because she needs it NOW
• APRA releases its ‘Policy’ and ‘Supervision’ Priorities documents for 2020 – which include a focus on APRA regulated superannuation funds

State Taxes

Legislation & Announcements (State)

• —

Cases (State)

• —

Rulings & Other (State)

• —

Other Developments

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

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Base Erosion & Profit Shifting & OECD

• —

Board of Taxation

• —

Inspector General and other external supervisors

• —

Miscellaneous

• CPI: December quarter 2019 index number – a 0.8 increase from the September 2019 quarter and annual increase of 1.8% to December 2019

Tax Practitioners Board

• TPB information sheet on ‘Code of Conduct’ Item 9, requirement to take ‘reasonable care’ in ascertaining a client’s state of affairs’ – 2013 Information sheet updated to include 2 new examples covering the ‘black economy’