Tax Month – July 2020

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

– July 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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COVID-19 related matters

JobKeeper

• Treasury’s review of the JobKeeper Program after 3 months in operation – concluding it helped and should be extended
• JobKeeper 1.0 reprised – ‘Fact Sheet’ updated to 21 July 2020 – announced to be continuing until replaced by new JobKeeper 2.0
• JobKeeper 2.0 – what’s different, what’s not; the Economic Statement and Update: the figures and policy decisions made since the December 2019 MYEFO
• JobKeeper 2.0 – Treasury website page introducing the 6 month, stepped down, two tier extension of the existing benefits
• JobKeeper 2.0 – Treasury’s ‘Fact Sheet’ explaining the extended regime – 6 months, benefit level stepped down twice, 2 tiers in each depending on hours worked

Other

• Victorian ‘Stay at Home Directions (Restricted Areas)’ – under the Public Health and Wellbeing Act 2008 – made 8 July 2020 – applies to 19 July (then the balance of 6 weeks as announced)
• COVID-19 updates from ATO (11.7.20) – JobKeeper, Accelerated Depreciation, Working From Home Shortcut
• COVID-Victoria – can you see your tax adviser and vice-versa (the impact of the ‘lockdown’ on tax practice)
• SA: Land tax relief extended – for ‘eligible landlords’ giving COVID rent relief…

 

Tax Articles

• Tax Reform – a job for The Tax Institute – as espoused by the Institute’s new ‘Director of Tax Policy and Technical’: Andrew Mills
• The Treasurer’s ‘Economic Statement’ on 23.7.20; JobKeeper finishing in Childcare; extending JobKeeper especially in Victoria; Tax measures to boost the economy
• Apple wins EU court case over $21 billion in taxes alleged to be underpaid under illegal preference deal with the Irish Government
• The work The Tax Institute does in consulting with tax authorities – not only benefits the system but advocates for members also

 

Legislation

Acts & Bills

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Announcements & Drafts

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Cases

High Court

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Full Federal Court

• Dental Corporation Pty Ltd v Moffet – Dentist working under a ‘services agreement’ was not an “employee” at common law but was under the extended meaning in s12(3) of the SGC Act

Federal Court

• Auctus Resources Pty Ltd v CofT – ATO could not recover a refundable tax offset for R&D after project disallowed – both parties failed to argue the relevant ‘transitional provision’

Administrative Appeals Tribunal (AAT)

• Chadbourne v CofT – Beneficiary denied deduction for interest on loans used by discretionary trust to buy rental properties
• Dapper Coelho v CofT – Working holiday makers‘ usual places of abode outside Australia
• Duncan v CofT – Payment by director, to settle various claims (trading whilst company insolvent) were not deductible

Other Courts & Tribunals

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Appeals

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Rulings

Decision Impact statements

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Rulings

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Determinations

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Law Companion Rulings

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Class Rulings & Product Rulings

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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 consultation report for June 2020 – to NTLG
• Reportable Tax Position Schedule – expanding lodgement requirements for ‘large private companies’ from 1 July 2020 – NTLG
• 2020 Income Tax Returns – record number lodged and $1b refunded in first 2 weeks; three main 2020 lodgement issues to date; Working from home shortcut extended
• Plutus Payroll (Australia’s biggest tax fraud) – founder: Simon Anquetil jailed for 7 years 6 months (5 years non-parol) – under joint ‘Operation Elbrus’

GST 

Legislation & Announcements (GST)

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Cases (GST)

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Rulings, Etc. (GST)

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Superannuation

Legislation etc. (Super)

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Cases (Super)

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Rulings etc. (Super)

• PS LA 2020/D1 – Super guarantee charge amnesty ending 7 September 2020 – Commissioner’s guidance to staff on remission of additional 200% penalty post-amnesty

State Taxes

Legislation & Announcements (State)

• NSW: land tax discount for new build-to-rent housing projects to be introduced together with Housing Diversity Policy

Cases (State)

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Rulings & Other (State)

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Other Developments

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

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Base Erosion & Profit Shifting & OECD

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Board of Taxation

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Inspector General and other external supervisors

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Miscellaneous

• CPI: June quarter 2020 index number decreases 2.2 percentage points (the biggest ever recorded)

Tax Practitioners Board

• TPB bans agent for sustained and systemic SMSF Auditor Registration misuse – saying 170 funds were audited (when they were not)
• Tax Practitioners Board v Hacker – unregistered director also guilty of unregistered practice, for providing ‘tax agent services’ through an unregistered company