Tax Month – October 2014

M o r g a n’ s   T a x   M o n t h

– October 2014 Developments –

This is a collection of developments in Australian tax law and practice that occurred in October 2014 and which aims at being of relevance to tax lawyers.*

F John Morgan
A member of the Victorian Bar (www.FJMtax.com)

Table of Contents

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ACTS, BILLS AND ANNOUNCEMENTS

Acts & Bills

*Tax and Superannuation Laws Amendment (2014 Measures No 4) Bill receives Royal Assent [1]

*Tax and Superannuation Laws Amendment (2014 Measures No 6) Bill introduced [2]

*Korea-Australia Free Trade Bills passed [3]

*Major FOI amendments – Bill introduced [4]

*Miscellaneous tax and superannuation law amendments: exposure draft legislation released [5]

*Withdrawing excess non-concessional super contributions: draft legislation [6]

*Small mineral exploration companies – tax incentive for shareholders: draft legislation [7]

Govt to repeal unnecessary legislation – introduction of Omnibus Repeal Day (Spring 2014) Bill 2014 and Amending Acts 1970 to 1979 Bill 2014 [9]

Correcting technical errors, etc in Acts – Statute Law Revision Bill (No. 2) Bill introduced [10]

Treasury Legislation Amendment (Repeal Day) Bill 2014 introduced – ITAA36 provisions re-written into ITAA 1997, consolidate provisions into TAA1 [11]

*Revised Aust-Swiss DTA enters into force [12]

Medicare levy surcharge thresholds paused for 3 years in line with Federal Budget announcements: Bill passes House of Representatives [14]

New Indirect Tax Concession Scheme packages made for diplomats – Determination made [15]

*Fuel excise increase: tariff increases to be tabled as ‘proposals’ (like the ‘Alcopops’ measures by the former Government) [16]

FOI Amendment Bill passes Reps with amendments [17]

Japan-Australia Economic Partnership: Bills introduced [18]

Three Bills referred to Senate committees [19]

 

Announcements

Senate committee to inquire into aggressive tax minimisation by Australian companies and Multinational Entities [20]

*Senate committee to examine Bitcoin and digital currencies, incl tax regulation [21]

Family business committee inquiry looks at tax issues: Government issues its response [22]

*Employee share scheme changes – tax on ESS options deferred to exercise for all companies; ‘start-up’ shares or options issued at a small discount not taxed until sale of shares [23]

*Agricultural Green Paper put out by Agriculture Minister recommends tax changes for farmers [24]

Tax Administrators from 38 Countries agree in Dublin on greater cooperation re BEPS and information exchange [25]

*OECD and G20 countries commit to automatic exchange of information [26]

*Non-final withholding tax on taxable Australian property transactions: consultation paper [27]

 

 

CASES AND APPEALS

High Court

Full Federal Court

*FCT v Australian Building Systems Pty Ltd (in liq) – No duty on liquidators to retain funds to pay CGT until assessment issued [28]

 

Federal Court

*Ogden v FCT – Appeal dismissed: no question of law raised [29]

FCT v Desalination Technology Pty Limited – R&D offset: Relevant expenditure properly ‘incurred’ – Commissioner loses appeal [30]

McGrouther v FCT – Taxpayers’ s appealled on 14ZYA notices (giving the Commissioner 60 days to make an objection decision) but they cannot be withdrawn [31]

 

Federal Circuit Court

Administrative Appeals Tribunal (AAT)

*Re Scanlon and FCT – CGT: obligation to pay an ETP was not a liability incurred ‘just before’ the CGT event – failed the maximum net asset value test [32]

*Re Dewheath Pty Ltd and FCT – Remission of penalties refused: failure to lodge BASs and income tax returns [33]

*Re Cronan and FCT – Default assessments using industry benchmarks affirmed – no records kept sufficient to demonstrate taxable income [34]

*Re Kirkby and FCT – Proceeds from sale of mining tenements assessable income [35]

 

Other Courts & Tribunals

*Re Arthur Brady Family Trust; Re Trekmore Trading Trust – Vesting dates allowed to be varied to avoid potential tax costs [36]

Roche v DCT – Director’s penalty notices upheld [37]

 

Appeals

*FCT v Resource Capital Fund III LP – High Court refuses leave to appeal [38]

High Court refuses special leave in 4 cases [39]

Re Thorpe and FCT – taxpayer appeals against AAT decision which only allowed him some deductions and imposed 50% penalties on the balance [40]

 

 

COMMISSIONER’S PUBLICATIONS & NEWS

Decision Impact statements

*Darling case – ATO access to family court proceeding documents [41]

Income tax and GST assessments, and Div 7A issues: ATO view of case [42]

 

Rulings

 

Determinations

TD 2014/D17 – FBT: duties of employment in connection with public or non-profit hospital [43]

 

Class Rulings & Product Rulings

Class Rulings issued on 1 October 2014 [44]

Class Rulings issued on 8 October 2014 [45]

Class Rulings, Addendum and Withdrawal [46]

Class Rulings and Addenda released on 22.10.14 [47]

CR 2014/90 – off-market share buy-back by Telstra [48]

 

 

ATO Interpretive Decisions (ATOIDs)

*ATOID on ‘employee’ status of pizza delivery drivers for SGC purposes [49]

 

Tax Alerts

Other ATO news or statements

*Company loss carry-back repealed: ATO reminder to tax practitioners [50]

*ATO releases new Code of Settlement – with links to ‘model deeds’ of Settlement [51]

ATO asks tax professionals to join conversation about future of tax profession [52]

Project DO IT – the time to disclose is now, says ATO (19 December 2014 deadline) [53]

 

 

GST DEVELOPMENTS

Legislation & Announcements (GST)

Cases (GST)

High Court refuses special leave in ATS Pacific Pty Ltd v FCT [54]

*GST: Re Guru 4U and FCT – company not carrying on an enterprise [55]

 

Rulings, Determinations & Other things (GST)

*GSTR 2014/1 – motor vehicle incentive payments following the AP Group Ltd decision [56]

GST – Addendum and Withdrawal of Class Rulings and GST Advice [57]

GSTD 2014/D4 – GST and supply of brokerage services for overseas purchases [58]

 

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

*Withdrawing excess non-concessional super contributions: draft legislation [59]

 

Cases (Super)

*DCT (Superannuation) v Graham Family Superannuation Pty Limited – SMSF loans to members: Court approves $50,000 penalty for trustee directors [60]

*Re The Trustee for Rane Haulage Trust and FCT – Superannuation guarantee charge: nominal interest component affirmed [61]

Rulings & Other things (Super)

 

CARBON TAX & EMISSIONS REDUCTION FUND

 

MINERALS & PETROLEUM RENT RESOURCE RENT TAX

 

AUSTRALIAN CHARITIES & NOT-FOR-PROFITS (ACNC) SECTOR

 

BOARD OF TAXATION

 

 

EXTERNAL SUPERVISORS – IGT; OMBUDSMAN, JCPAA & ANAO

Annual reports released: IGT, SCT, Ombudsman, SCT and AAT [62]

 

 

TAX PRACTITIONERS BOARD & LEGISLATION

‘Retroactive’ PI insurance cover required for tax and BAS agents from 1 July 2015: Tax Practitioners Board reminder [63]

Re Burnett – Tax Agent appeals to Federal Court against AAT decision to reject re-registration [64]

Re Frugtniet and Tax Practitioners Board – Tax agent registration termination upheld [65]

Tax Practitioners Board’s office is moving to the Sydney CBD [66]

 

 

STATE TAXES

Legislation & Announcements (State)

NSW: State Revenue Legislation Further Amendment Bill 2014 passed – Payroll Tax restriction to contractor provisions; Duties Act anti-avoidance; Land Tax grouping provisions [67]

NSW – State Revenue Legislation Amendment (Electronic Transactions) Bill 2014 – passed and awaits Royal Assent [68]

SA: Budget Bill receives Assent [69]

 

Cases (State)

NSW land tax: Bisvic Pty Ltd v Chief Comr of State Revenue (No 2) – primary production exemption refused [70]

 

Rulings & Other (State)

Qld: Insurance duty exemption for health insurance – admin arrangement made [71]

WA stamp duty: land transfer under property order; business asset transfer [72]

WA: land tax – withdrawal of memorial; FHOG – substantially renovated homes [73]

 

 

OTHER DEVELOPMENTS

Amending FoFA regs stand: disallowance motion defeated in the Senate [74]

Government to establish public register of financial advisers [75]

Government releases its response to Senate inquiry into ASIC [76]

 

 

 

 

THE END
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