Tax Month – June 2020

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

– June 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

HomeBuilder

• ‘HomeBuilder’ program announced – $25,000 to build new homes or substantial renovations – open from 4 June to 31 December 2020

JobKeeper

• ‘JobKeeper key dates’ page updated on ATO website – showing payment and enrolment deadlines for each fortnight
• Treasury Review of the JobKeeper program – Joint Bodies Submission

Other

• Div 7A and COVID-19: ATO allows 12 month extension of time to make 30 June 2020 ‘minimum yearly repayments’ to avoid a s109E deemed dividend on ‘shortfall’

Legislation

Acts & Bills

• Ride sourcing services now eligible for taxi travel FBT exemptions – Treasury Laws Amendment (2019 Measures No. 3) Bill 2019 – Act 64 of 2020

Announcements & Drafts

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Cases

High Court

• High Court Judge X – It’s time to end the culture of silence on sexual harassment

Full Federal Court

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Federal Court

• ATO launches legal action against accounting giant PwC & meat processor JBS – including use of ‘legal professional privilege’ (LPP)

Administrative Appeals Tribunal (AAT)

• MJPV v CofT – AAT largely upheld the Commissioner’s ‘asset betterment’ assessments against a married couple
• AJ & PA McBride Ltd v CofT – No 100% write-off (deduction) for existing fences on a sheep station the taxpayer ‘acquired‘
• Seribu Pty Ltd v CofT – AAT decides that ‘bitcoin’ not a ‘foreign currency’ for income tax purposes (Div 775 foreign exchange loss deductions)

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

• SIC and GIC for 2020/21 First quarter – ‘base rate’ 0.1%, with 3% & 7% uplifts respectively
• ATO consultation report for May 2020 – to NTLG

GST 

Legislation & Announcements (GST)

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Cases (GST)

• Travelex – goes to the High Court again – this time on the amount of interest the Commissioner has to pay on the ‘overpayment’
• Cash World Gold Buyers Pty Ltd v CofT – Taxpayer’s claim for input tax credits on supposedly ‘scrap gold’ rejected (all sorts of issues and problems)

Rulings, Etc. (GST)

• GST withholding obligations, for purchasers of certain land – 30 June 2020 deadline for grandfathering of supplies under pre-1 July 2018 that haven’t settled by then

Superannuation

Legislation etc. (Super)

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Cases (Super)

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Rulings etc. (Super)

• Industry super fund puts up $200m for equity stakes in small business
• AustralianSuper takes 25pc stake in build-to-rent-to-sell residential housing platform
• Prime Minister’s plan for super infrastructure investment edges closer
• Push to give SMSFs the chance to invest like big funds

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 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

• Inquiry into the Performance of the Inspector-General of Taxation – Senate Committee made 16 Recommendations (all of them welcome)

Miscellaneous

• ‘Employee Share Scheme’ tax rules are too complicated – Law Council at Parliamentary Committee Public Hearings
• Foreign investment reforms proposed – stronger, more flexible ‘national interest test and enforcement (tax information sharing)
• Where next for Australia’s tax system? How our tax system can help reboot prosperity for Australia – June 2020 (PwC Report)

Tax Articles

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Tax Practitioners Board

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