T a x T e c h n i c a l – M o n t h l y N e w s
– November 2019 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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Tax Articles
Legislation
Acts & Bills
- Treasury Laws Amendment (International Tax Agreements) Bill 2019 passed – giving legislative force to the Australia-Israel DTA and introducing a domestic ‘deemed source rule’, for DTA purposes
- The ‘Combatting Illegal Phoenixing’ and ‘Housing Affordability’ Bills (both ‘Treasury Laws’ and ‘Foreign Takeovers’ Bills) – pass our Lower House without amendment – including controversial non-resident ‘main residence’ measure
- AFR article about the Bill which would deny any ‘main residence’ CGT exemption, to a vendor who was non-resident at the time of sale (rather than limiting the exemption to the residency period)
- CGT ‘main residence’ exemption to exclude ‘non-residents’ – Scrutiny of Bills Committee concerns with the ‘retrospective’ effect of this measure (but not in the sense that really matters)
Announcements & Drafts
- Draft guidelines on application for the ‘economic infrastructure staples tax concession’ – which reduces the 30% MIT tax withholding, for non-residents, down to 15%
- Extension of the ‘significant global entity’ definition to go beyond groups headed by listed companies – revised exposure draft legislation after ’round 1′ consultation
Cases
High Court
- Lordianto v AFP; Kalimuthu v AFP – High Court upholds ‘Proceeds of Crime’ orders for money laundering offences
- Bosanac v CofT – High Court refuses taxpayer’s Ceriorari application to quash lower court decisions in ATO’s favour – saying that Part IVC appeals can apply to post objection decision further amended assessments
Full Federal Court
- Commissioner appeals Addy decision – backpackers from Chile, Finland, Germany, Japan, Norway, Turkey and the United Kingdom urged to wait and employers likewise
- Glencore Investment ‘transfer pricing’ appeal – Commissioner late to file his appeal (by 5 mins) but granted leave to appeal late
Federal Court
- FCT v Iannuzzi (No 2) – Liquidator disqualified for 10 years for systematic conduct facilitating ‘illegal phoenixing’ which was at least ‘reckless’
- Bobos v DCT – A company director subject to a default judgment for director penalties has been unsuccessful in challenging a bankruptcy notice based on the judgment debt
Administrative Appeals Tribunal (AAT)
Other Courts & Tribunals
Rulings (ATO)
Rulings
- TR 2019/D5 – FBT on car parking benefits – ruling updated to increase FBT so it is based on penalty all day rates to discourage all day parking
- Employers face FBT hit on staff car parking – change of ATO interpretation of existing law could create FBT liability or increase it radically
- TR 2019/D6 – Capital expenses: labour costs incurred in creating capital assets – the Commissioner ventures the ‘brave’ view they are capital in nature (and not a ‘general deduction’)
Determinations
Tax Alerts
Other ATO news or statements
- Addy v Commissioner of Taxation – Statement from ATO on effect of DTA ‘anti-discrimination’ invalidity of ‘backpacker’ tax, whilst Commissioner decides if he’ll appeal
- Victorian building developer jailed for 3 years for GST fraud over $500k – ATO media release
- Private Groups Stewardship Group – provides committee members with ATO’s ‘notification of clients’ and ‘typical questions’ to engage with ‘High Wealth Private Groups’
GST
Legislation & Announcements (GST)
- —
Superannuation
Legislation etc. (Super)
- Super Guarantee amnesty Bill: Senate Committee report recommending the Bill be passed and the Minority Labor Report
- Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 – superannuation ‘choice’ extended to employees under post 30 June 2020 ‘enterprise agreements’ and ‘workplace determinations’
Cases (Super)
Rulings etc. (Super)
State Taxes
Legislation & Announcements (State)
- Vic: State Taxation Acts Further Amendment Bill 2019 passed – Duties Act and Land Tax Act changes (Nov 2019)
- SA Land Tax – Government does an Upper House cross-bench deal to further reduce land tax – including max rate down from 3.7% to 2.4% and threshold increased to $2m
Cases (State)
Other Developments
Inspector General and other external supervisors
- Inspector General of Tax – wants tougher whistleblower protections for ATO officers, blowing the whistle on ATO conduct
- The new Inspector General of Taxation and Taxation Ombudsman: Karen Payne addressed the Melbourne LCA Tax Committee on the nature, role and priorities of the IGTO, particularly under her new tenure
Miscellaneous
- US Democratic candidates floating annual wealth taxes, Estate duty upped to 77%, Federal income taxes upped to 70%, CGT rate doubled to 40% – echos of Labor’s loss in our May 2019 election
- ASIC guidance on companies’ whistleblower policies due by 1 Jan 2020 (RG 270) and relief to small not-for-profits and charities (sub-$1m revenue)
Tax Practitioners Board