Tax Month – July 2014

M o r g a n’ s   T a x   M o n t h

– July 2014 Developments –

This is a collection of developments in Australian tax law and practice that occurred in July 2014 and which aims at being of relevance to tax lawyers.*

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

*Tax and Superannuation Laws Amendment (2014 Measures No 4) Bill 2014 – Thin Cap; Foreign Dividends (s23AJ); Foreign Residents and Capital Gains [1]

*Repeal of 1 July 2015 tax cuts and other measures – Bill introduced [2]

*MIT withholding tax regime for foreign pension funds: draft legislation released for comment [3]

 

Announcements

*Exploration development incentive for greenfield sites: proposing tax losses converted to shareholder credits at corporate rate [4]

*Australia’s tax treaty negotiation program: Treasury seeks comments [5]

*OECD approves the 2014 update to the OECD Model Tax Convention [6]

*OECD automatic exchange of information – global standard released [7]

AFP-hosted fraud and anti-corruption centre established – announced my the Minister for Justice (The Honorable Michael Keenan MP) [8]

 

 

CASES AND APPEALS

High Court

Full Federal Court

*IOOF Holdings Limited v FCT – taxpayer had no right to have consolidation rules applied as they existed before the amendments [9]

 

Federal Court

*FCT v Growth Investment Fund SA & Ors – Commissioner obtains freezing order for over id=”mce_marker”4.27m of assets and substituted service in Switzerland [10]

*Halls v FCT – ATO interim audit report was not a ‘decision’ amendable to review under the ADJR Act and lacked sufficient prospects of success for the Judiciary Act [11]

*Shears v DCT – Extension of time to apply for judicial review refused as ADJR Act did not apply to the decisions the subject of the complaint [12]

 

Federal Circuit Court

Administrative Appeals Tribunal (AAT)

*Re Ford and FCT – Car expenses for transporting equipment to work not deductible because there was a sufficient locker at work [13]

*Re Yazbek and FCT – Transfer of shares to partnership ineffective – taxpayers assessable on dividends [14]

*Re Nassar and FCT – Taxpayer fails to prove that income tax and GST assessments excessive [15]

*Re Murphy and FCT – Transfer of shares into joint names triggers CGT [16]

*Re Cameron and FCT – PAYG credit claims disallowed [17]

 

Other Courts & Tribunals

*DCT v Meakes – Tax repayment instalment order set aside [18]

 

Appeals

*Re Moignard and FCT – Commissioner appeals against AAT decision that taxpayer was not presently entitled to vineyard proceeds [19]

*FCT v Hunger Project Australia [2014] FCAFC 69 – Commissioner will not seek special leave to appeal to the High Court [20]

Re Yazbek v FCT – taxpayers appeal AAT decision that dividends were not derived by the limited partnership they set up [21]

 

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

*CGT scrip-for-scrip rollover – ATO view on Fabig case [22]

Altnot; Pham – ATO Decision Impact Statements [23]

*Kelly v FCT – Assignment of partnership interest effective but no deduction for super contribution for non-executive director [24]

 

Rulings

*TR 2014/5 – Matrimonial property or money transferred out of private companies [25]

 

Determinations

TD 2014/18 – Thin cap rules and special purpose securitisation entities [26]

TD 2014/19 – Reasonable travel and meal allowance amounts for 2014-15 [27]

*TD 2014/20 – Div 7A benchmark interest rate for 2014-15 is 5.95% (down from 6.20%) [28]

 

Class Rulings & Product Rulings

CR 2014/54-56 – Incentive plan; Government bonds; FBT and employee purchase program [29]

CR 2014/57-60 – Return of capital; early retirement; cancellation of units; FBT log book [30]

PR 2014/13-15 Insurance cover; deductibility of investment [31]

PR 2014/16 – Tax consequences of a novated vehicle lease [32]

 

ATO Interpretive Decisions (ATOIDs)

TOFA and term deposit provided as security: ATO ID [33]

 

Practice Statements

PS LA 2011/27 on when ATO view of the law will only be applied prospectively modified after Macquarie Bank case [34]

 

Tax Alerts

*TA 2014/1 – ATO auditing special purpose trusts used by property developers to argue proceeds are not revenue but capital gains with 50% discount [35] 19

 

Other ATO news or statements

Tax agent lodgment program 2014-15: details released [36]

Wrong tax system for the digital age? Treasury executive asks [37]

*CPI: June quarter 2014 is 0.5% and 3.0% for the year to 30 June 2014 [38]

 

 

GST DEVELOPMENTS

Legislation & Announcements (GST)

Part-time tertiary courses to be tertiary courses to be GST-free retrospectively from 2009 – determination registered July 2014 [39]

 

Cases (GST)

Rulings, Determinations & Other things (GST)

*GSTR 2014/D2 – GST treatment of credit/debit card fees and charges [40]

*GSTD 2014/3 – GST adjustment event: rental yield guarantee top-up payments [41]

 

 

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Cases (Super)

Re Dowling and FCT – Super excess non-concessional contributions tax affirmed; no special circumstances [42]

 

Rulings & Other things (Super)

SMSF auditor registration fees increased by $3 from 1 July 2014 to id=”mce_marker”03 and the SMSF Annual Statement goes up id=”mce_marker” to $51 [43]

ATO flags SMSF concerns for review this year [44]

ASIC concerned about property investment advice to SMSFs [45]

Retirement income products and regulation: Govt discussion paper released [46]

 

 

CARBON TAX & EMISSIONS REDUCTION FUND

Emissions Reduction Fund: Senate committee recommends Bill be passed [47]

Senate committee recommends carbon tax repeal Bills be passed, but tax cuts repeal Bill defeated [48]

*Carbon tax repeal Bills defeated in the Senate, but Govt will re-introduce next week [49]

*Carbon tax repeal Bills – finally repealed [50]

 

 

MINERALS & PETROLEUM RENT RESOURCE RENT TAX

Mining tax abolition: debate in the Senate [51]

Government will not remove tax cuts associated with mining tax repeal [52]

 

 

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

*ACNC replacement – options paper released [53]

 

 

BOARD OF TAXATION

*Review of TOFA regime – Survey of Compliance Costs to be completed by 18 July 2014 [54]

 

 

EXTERNAL SUPERVISORS – IGoT; OMBUDSMAN, JCPAA & ANAO

*Tax penalty regime can be improved: IGT report released [55]

 

 

TAX PRACTITIONERS BOARD & LEGISLATION

*Tax (financial) advisers: Tax Board policy documents finalised [56]

Tax (financial) advisers: registration requirements – regs finalized [57]

New regulation of financial advisers providing tax advice: ASIC [58]

*When ‘payroll service providers’ need to register as a ‘tax agent’ or ‘BAS agent’: TPB draft information sheet released [59]

Re Harris and FCT – Tax agent found to be fit and proper person [60]

Tax Practitioners Board v Su – Pecuniary penalty of $70,000 imposed on tax agent [61]

Re Pathiranage and Tax Practitioners Board – Tax agent registration renewal refused; education requirements incomplete [62]

 

 

STATE TAXES
Legislation & Announcements (State)

ACT: payroll tax threshold; insurance duty; land tax rates – Instruments made [63]

NT: Budget Bill receives Assent – targeting the FHOG to new homes [64]

WA: Revenue Laws Amendment Bill receives Assent [65]

 

Cases (State)

NSW land tax: Laviva Nominees Pty Ltd v Chief Comr of State Revenue – interest imposed on special trust for tax defaults affirmed [66]

NSW land tax: Edgely Pty Limited v Chief Comr of State Revenue – grouping of companies affirmed [67]

NSW payroll tax: Health Service Pty Ltd v Chief Comr of State Revenue – employment agency provisions applied despite employer/employee relationship [68]

NSW payroll tax: Conrad Linings Pty Limited v Chief Comr of State Revenue – grouping decision affirmed [69]

Vic stamp duty: White Rock Properties Pty Ltd v Comr of State Revenue – transfer of land to “agent” dutiable [70]

 

Rulings & Other (State)

ACT Revenue Office website updates [71]

Qld: unpaid tax interest – Public Ruling updated [72]

Qld: objection and review rights; unexecuted instruments: Public Rulings updated [73]

SA: interest rates on tax defaults; land tax; etc – Information Circulars released [74]

SA payroll tax: RevenueSA guides on rates and thresholds [75]

 

 

OTHER DEVELOPMENTS

Need to reform the tax system cannot be overstated: Treasury Secretary [76]

FoFA amending regs tabled in the Senate [77]

FoFA regs to stand – Senate disallowance motion defeated; Govt to make further regs following PUP deal [78]

Former High Court Judge: Ian Callinan to head CBA review [79]

 

THE END
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