Tax Month – October 2021

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

– October 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 Disaster Payment phase-out: NSW and ACT at 70% and 80% fully vaccinated milestones
• Corporate insolvency reforms: draft regulations released ASIC extends COVID-19 relief for financial advice – 20 days ‘Record of Advice’ extension now until 15 April 2022
• ASIC issues Jobkeeper notice and guidance for Listed Companies
• Victorian Pandemic Bill causes major concern and misrepresents consultation with the Victorian Bar (not tax but … )

Legislation

Acts & Bills

• Deadline for Director Identification Number applications extended – to 30 November 2022 and 12 months later under a different Corporations Act
• Trust insolvency regime reform: Treasury consultation

Announcements & Drafts

• House of Reps Committee’s report into ATO administration – includes recommendations for some interesting tax law changes

Cases

Federal Court

• Wood v CofT – Taxpayer loses ‘serious hardship’ appeal – $91,000 for renting a large house, $110,724 in private school fees

Administrative Appeals Tribunal (AAT)

• Carvell v CofT – Taxpayer fails to show bank deposits were not assessable income

Rulings

Determinations

• TD 2021/7 – Aggregated turnover test: connected entities with differing year ends – two part years have to be recalculated (silly?)
• TDs 2021/D2-D4 – Aggregation rules: partnerships, foreign hybrids, non-entity JVs, CLPs, interposed public entities
• TD 2021/D5- ESS: meaning of “genuine disposal conditions” and deferred taxing point rules

Practical Compliance Guides

• PCG 2020/3 (updated) – Working from home deductions: “shortcut” 80c/hr rate now available in 2021-22

Other ATO news or statements

• Digital transformation driving tax administration: ATO paper

GST 

Cases (GST)

• GST – Commissioner appeals the STNK gold refining case despite winning the substantive ‘GST-free’ refining issue (to establish Div 165 ‘anti-avoidance’ also)

Rulings, Etc. (GST)

• Board of Taxation’s (BoT) review of the application of the ‘new’ GST measures applying to low-value imported goods – GST Committee reflects

Superannuation

Cases (Super)

• Steer v AMP – Super trustee breached duty to deceased member in cancelling life insurance under ‘opt-in’ requirements – emailed notice never received
• ASIC v Colonial First State Investments Limited – Super trustee hit with $20m penalty for misleading members

Other (Super)

• ASIC releases updated information about the distribution of superannuation products
• “Downsizer” Superannuation Contributions of up to $600k available (can be overlooked)

State Taxes

Legislation & Announcements (State)

• New Victorian tax – 50% ‘windfall gains tax’ on rezoning – up to 100% deferrable for up to 30 years – secured as a first charge on land

Other (State)

• Victoria: ‘Build to Rent’ – 50% land tax and other concessions extended – developments finished by 31 Dec 2031

Other Developments

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

• Global Citizen case – ACNC won’t appeal AAT finding that it was entitled to be registered as a PBI case (entitled to deductible donations)

Board of Taxation

• Board of Taxation’s (BoT) review of the application of the ‘new’ GST measures applying to low-value imported goods – GST Committee reflects

Inspector General and Ombudsman and other external supervisors

• IGTO report: The effectiveness of the ATO’s communication of taxpayers’ rights to complain and appeal etc.

Miscellaneous

• Pandora Papers released; ATO to investigate for Australian links – but they don’t rely on leaks and not everything is illegal
• What are the Pandora Papers? The biggest leak in history explained (bigger than ‘Panama’ and ‘Paradise’ leaks)
• Banking leak opens Pandora’s box of offshore accounts – Czech Minister, former UK Prime Minister, Jordan’s King & 400 Australians
• The digital and crypto asset industry– Senate committee’a report makes recommendations including CGT and other tax changes