Tax Month – July 2021

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

– July 2021 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

• COVID-19 support package for Victorian ‘Lockdown #5’, updates NSW ‘Lockdown #2’ package, which updated the original package for Victoria’s ‘Lockdown #4’
• PM overhauls Covid-19 economic aid package as Victoria locks down again (#5)
• Covid-19 Financial support announced in July 2021 for businesses and workers affected by lockdowns in NSW & Victoria
• As South Australia ‘joins the Covid Lockdown party’ – State and Federal Support Benefits announced (like Vic & NSW)
• COVID-19 Disaster Support Payment boosted again – PM and Treasurer’s Media Release (28.7.21) – valuable for NSW
• NSW Government announces (28.7.21) increased and wider COVID-19 JobSaver benefits for NSW businesses – back dated too
• Good summary of NSW COVID-19 support measures for businesses, sole traders and not-for-profit organisations (at 29.7.21) with links to Victorian & South Australian equivalent relief
• State & Territory Covid relief – ‘technical issues’ considered

Legislation

Acts & Bills

• New ‘Residency’ Test for individuals – 2021 Federal Budget proposals based on Board of Tax’s 2019 Recommendations
• Changes to residency rules for ‘individuals’ – Law Council’s 5.7.21 submission to Government (modifications to Board of Tax Recommendations)

Announcements & Drafts

• Review of ‘venture capital’ tax concessions – Government releases ‘terms of reference’ on 7 July 2021 for report near end of 2021
• Australia’s ‘Patent Box’ announcement in the May 2021 Federal Budget – Treasury issues ‘Discussion Paper’ on its design and seeks submissions by 16 August 2021

Cases

High Court

• Taxpayers apply for special leave to appeal to the High Court in the Peter Greensill Family Co Pty Ltd and N&M Martin Holdings Pty Ltd cases

Full Federal Court

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Federal Court

• CofT v Ross – Assets betterment assessment: ATO and taxpayers both win and matter remitted to the AAT (significant appeal issues considered)

Administrative Appeals Tribunal (AAT)

• Clark v CofT – Extension of time to lodge objections refused because taxpayer had poor prospects of proving the deductions he sought to claim

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’s Tax Practitioner Stewardship Group – 6 July 2021 Meeting – ‘TAX TIME 2021’ review for Tax Agents

GST 

Legislation & Announcements (GST)

• 2018 measures to impose GST on low value imported goods – Board of Tax to review their effectiveness and report by 17 December 2021

Cases (GST)

• Singh v CofT – No input tax credits due to inadequate documentation & ‘reckless’ penalty upheld

Rulings, Etc. (GST)

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Superannuation

Legislation etc. (Super)

• Superannuation Trustees’ new covenant to develop a strategy for maximising the members’ ‘retirement incomes’ – Treasury releases a ‘Position Paper’ on new law

Cases (Super)

• Corporate Superannuation accounts – ASIC alleges ‘fees for no service’ against against 6 AMP companies ($600k on 1,500 accounts)
• ASIC v MobiSuper Pty Ltd & Ors – Court finds former super trustee failed to act efficiently, honestly and fairly (outsourcing and preventing misrepresentations)

Rulings etc. (Super)

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State Taxes

Legislation & Announcements (State)

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Cases (State)

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Rulings & Other (State)

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Other Developments

Australian Charities & Not-for-Profits 

• Four reasons for ‘donations’ to charities and not-for-profits not being deductible – but one of them accounts for two-thirds of adjustments
• Consultation on voluntary ‘Transparency Code’ for Australian Charity sector involved in ‘natural disaster’ relief (submissions by 13.8.21)

Base Erosion & Profit Shifting & OECD

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Board of Taxation

• 2018 measures to impose GST on low value imported goods – Board of Tax to review their effectiveness and report by 17 December 2021

Inspector General and other external supervisors

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Miscellaneous

• A ’round-up’ of the Federal Legislative Tax Program as at 29 July 2021 – Acts, Bills, exposure drafts, consultations, reviews and ATO guidance

Tax Articles

• Changes to the R&D Tax Incentive as at 1 July 2021

Tax Practitioners Board

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