Tax Month – March 2020

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

– March 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

Announced relief

• Government’s 1st Tranche Coronavirus $17b Stimulus Package – instant asset write-off widened; investment allowance; accelerated depreciation; cash based on PAYGw to employers; money to pensioners etc.
• COVID-19: Government’s 2nd tranche $66b stimulus package – tax free payments of 50% of PAYGw on wages; $550 per fortnight job seeker supplement; SME loan relief; debt distress protection; up to $10k this year and $10k next year (this tranche might actually help…)
• Government’s Tranche 3 ‘JobKeeper’ wage subsidy – $130bn for payment of $1,500 per fortnight to COVID-19 affected employers, to fund remuneration to eligible employees
• ‘JobSeeker’ Coronavirus Supplement of $550 per fortnight – means test rules relaxed

Commentary

• The ‘JobKeeper’ wage subsidy measure – commentary from the Tax Institute’s Senior Tax Counsel’s Report, Bob Deutsch
• COVID-19 – Employer cash boost benefit (now legislated) – understanding the complexity in this important benefit
• Employers Cash Flow Boosts: A Beginner’s Guide with worked examples (quite the best thing I’ve read on this)

State and Territory taxes

• State Taxes – COVID-19 relief – a round up of all states and territories

Legislation

Acts & Bills

• Government’s Coronavirus economic response – 8 Bills introduced on Monday 23 March 2020
• Coronavirus economic response – 8 Bills passed by Parliament, with 11 Government Amendments and 1 Senate Amendment and now Royal Assent

Announcements & Drafts

Cases

High Court

• BHP Billiton Limited (BHP Group Ltd) v CofT – High Court upholds Commissioner’s CFC attribution assessment of the whole of Australian Dual Listed’ entity’s share of its Marketing Hub’s income – the UK Dual Listed’s subsidiary suppliers were ‘associates’ because they were ‘sufficiently influenced’
• WA Duty: Commissioner of State Revenue v Rojoda Pty Ltd – High Court analyses the rights of partners and held two remedial deeds dutiable as declaring trusts different to those the former partners had previously enjoyed

Full Federal Court

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Federal Court

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Administrative Appeals Tribunal (AAT)

• SWPD v CofT – long-term owner of largely native forest, who had not harvested any trees, held to be ‘carrying on a business’ and entitled to small business CGT relief
• Douglas v CofT – Lump sum arrears of disability pay a tax-free superannuation lump sum

Other Courts & Tribunals

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Appeals

• Travelex – Commissioner seeks leave to appeal to the High Court from the test case he lost – about the date from which interest on overpaid tax under RBA system

Rulings

Decision Impact statements

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Rulings

• TR 2001/13 Addendum – update to interpretation of Double Tax Agreements (DTAs) – for MLI, case law, income and capital commentary and ‘source’ rules applying as a ‘sword’ (not just a ‘shield’)

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 Steering Group issues its ‘February 2020 Consultation Report’

GST 

Legislation & Announcements (GST)

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Cases (GST)

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Other (GST)

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Superannuation

Legislation etc. (Super)

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Cases (Super)

• Douglas v CofT – Lump sum arrears of disability pay a tax-free superannuation lump sum
• Burns v CofT – Army invalidity pension concessionally taxed as super lump sum

Other (Super)

• Superannuation Guarantee Amnesty – only runs for 6 months from 6 March 2020 – ‘real incentives’ to disclose and a ‘nasty sting in the tail’ for those who don’t
• Superannuation Guarantee Amnesty – ATO guidance on the 6 month regime, including the ‘approved form’ etc.
• SMSFs more than 2 weeks late in lodging an annual return will change change status on ‘Super Fund Lookup’ to ‘Regulation details removed’ precluding rollovers and SGC contributions
• 2020 SMSF annual return form available at the end of May 2020 and will contain ‘label’ changes
• SMSF Regulator’s Bulletin SMSFRB 2020/1 – SMSFs undertaking property developments: ATO flags concerns and lists a welter of tax and regulatory implications

State Taxes

Legislation & Announcements (State)

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Cases (State)

• WA Duty: Commissioner of State Revenue v Rojoda Pty Ltd – High Court analyses the rights of partners and held two remedial deeds dutiable as declaring trusts different to those the former partners had previously enjoyed

Rulings & Other (State)

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Other News

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

• ACNC announced it would commence a review of about 500 registered charities for their eligibility for registration

Base Erosion & Profit Shifting & OECD

• Synthesised text of Australia’s double taxation agreement (DTA) with Canada with the MLI – released by the ATO

Board of Taxation

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Inspector General and other external supervisors

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Miscellaneous

• Social security ‘deeming rates’ cut by 0.5% in response to 0.25% Reserve Bank cut in interest rates
• Debt collection relief in the Government’s 2nd tranche Coronavirus support package – useful but not all the ATO’s collection powers are curtailed (see PP comment)

Tax Articles

• Ex-NewSat CEO convicted for $357,500 in fake invoices and also his accountant – here the beneficiary of the fraud was not the taxpayer
• Transfer Pricing – a simple explanation of a complex topic
• MyGovID: SHORT TERM PAIN – 6 steps, 6 problems and no extensions for changeover (27 March 2020 is the end of the old system)

Tax Practitioners Board

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