Tax Month – September 2013

M o r g a n’ s   T a x   M o n t h

– September 2013 Developments –

This is a collection of developments in Australian tax law and practice that occurred in September 2013 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

Announcements

*Coalition to introduce “tax receipt” for PAYG(w) taxpayers – if elected (and now they are) [1]

*Coalition to allow investors to deduct mining exploration expenses [2]

*Greens announce that if they have the power they will block the coalition repealing the carbon tax and abolishing the instant asset write-off and low-income super rebate [3]

Mr Hockey announced Treasurer and Senator Sinodinos announced as his assistant (following surprise elevation of Senator Cormann) [4]

*Incorporation of NSW barristers’ practices: motion defeated [5]

Coalition promises to clean up Labor’s legislation by press release on tax issues [6]

Offshore Banking Unit regime changes – start date deferred [7]

 

 

CASES AND APPEALS

High Court

Full Federal Court

 

Federal Court

*Macquarie Bank Limited & Anor v FCT & Anor – taxpayers fail in bid to have OBU expense allocation applied only prospectively under ‘U-turn’ ruling [8]

*Buckeridge v FCT – Court holds that documents remain confidential in tax case [9]

*SPI PowerNet Pty Ltd v FCT Electricity transmission business – deduction for impost refused [10]

 

Federal Circuit Court

Administrative Appeals Tribunal (AAT)

*Re Chang and FCT; Re Bai and FCT – Deposits in personal bank accounts: mixed results for taxpayers [11]

*Re S J Buller Pty Ltd and FCT – WET: taxpayer was an associated producer; rebates denied [12]

*Re AP Energy Investments Limited and FCT – Foreign company not liable for CGT on sale of shares in Aust mining company – principal asset test failed [13]

*Re Russell and FCT – Self-education expenses and work-related expenses claims denied for lack of documentation [14]

*Re Beiruti and FCT – AAT had no jurisdiction to review the ATO’s refusal to give a credit for PAYG deducted, and refused an extension to review [15]

*Re Chemical Trustee Limited and Ors v FCT and Chief Executive Officer, AUSTRAC – Wickenby cases: AAT orders release of FOI documents and further review [16]

*Re Gerbic and FCT – Taxpayer liable for CGT on sale of property: no exemption [17]

*Re Harrison and FCT – UK pension lump sums assessable as ordinary income [18]

*Re Perry and FCT – Work-related deduction claims unsubstantiated, so penalty for “recklessness” confirmed [19]

*Re ACN 092 138 442 Pty Ltd (In Liquidation) and FCT – Director to obtain leave before commencing proceedings against objection decision [20]

*Re The Trustee For The Confidential Trust and FCT – AAT has no power to stay operation of objection decision [21]

 

Other Courts & Tribunals

*Victorian loan broker jailed for $1.3m revenue fraud [22]

DCT v Ramon Ronald Osborne as trustee for the Osborne Family Trust – Claim of not being a trustee failed and taxpayer jointly liable for RBA debt with wife [23]

 

Appeals

*Resource Capital Fund IV LP & Anor v FCT & Anor – Commissioner appeals against decision that s255 notice didn’t apply and no tax to pay either [24]

*Sea Shepherd Australia Ltd v FCT & Anor – Taxpayer seeks leave to appeal decision finding them not a ‘Deductible Gift Recipient’ or ‘DGR’ [25]

*Pratt Holdings Proprietary Limited v FCT – Taxpayer seeks leave to appeal decision denying balancing charge losses on mining tenement [26]

FCT v Fabig – taxpayer seeks leave to appeal to the High Court from decision that the takeover was available on substantially the same terms to all vendors [27]

 

 

COMMISSIONER’S PUBLICATIONS

Decision Impact statements

Asset betterment assessments: ATO view on Gashi case [28]

*ATO view on Messenger Press case – Deduction for foreign exchange losses [29]

 

Rulings

Determinations

TD 2013/19 Capital gains tax: improvement threshold 2013-14 is indexed to id=”mce_marker”36,884 [30]

 

Class Rulings & Product Rulings

CR 2013/68-70 – Cancellation of shares; return of capital; early retirement [31]

CR 2013/71 – University Dairy training scholarship receipt are exempt from tax [32]

PR 2013/16 – Interest will be deductible on investment loan to purchase Macquarie Units – less cost of capital protection on loan [33]

CR 2013/72-73 – Voluntary early retirement scheme: ANU [34]

 

ATO Interpretive Decisions (ATOIDs)

Practice Statements

Tax Alerts

Other Commissioner news or statements

Rio Tinto signs tax compliance arrangement with ATO [35]

Tax scheme promoter convicted and sentenced to 6 years jail – 39^th Project Wickenby judgment [36]

 

 

GST DEVELOPMENTS

Legislation & Announcements (GST)

Cases (GST)

*GST: no creditable acquisition made, so input tax credits refused [37]

ATO view on Re Rod Mathiesen Truck Hire Pty Ltd case – consideration all received at settlement despite loan back to vendor who defaulted [38]

*Storage Equities Pty Ltd v Valuer-General – Land value of properties includes GST [39]

*GST- AP Group Ltd v FCT: motor vehicle incentive payments – taxpayer’s and Commissioner’s appeals dismissed [40]

*Cityrose Trading Pty Ltd v Booth & Anor – GST special clause in property contract held void [41]

GST: input tax credits denied, no enterprise carried on [42]

 

Rulings & Other things (GST)

GSTD 2013/3 – GST and acquisitions by a managed investment fund [43]

 

 

SUPERANNUATION DEVELOPMENTS

Legislation, Announcements etc. (Super)

Cases (Super)

*Re Floorplay Pty Ltd and FCT – Fishing crew members were employees, not contractors (despite ‘share of the catch’ clause); SGC liability affirmed [44]

Re Griffiths and FCT – Super excess contributions tax assessments affirmed [45]

*Re Sutton and FCT – Super excess non-concessional contributions tax affirmed [46]

Superannuation guarantee: Re The Trustee for the SR & K Hall Family Trust and FCT – workers were employees not contractors [47]

 

Rulings & Other things (Super)

ATO speech re compliance and future of SMSFs [48]

*ASIC releases proposed guidance on quality of SMSF advice to be given by advisers [50]

Auditing SMSFs: AUASB Guidance Statement revised [51]

 

 

CARBON TAX

MINERALS & PETROLEUM RENT RESOURCE RENT TAX

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

BOARD OF TAXATION

EXTERNAL SUPERVISORS – IGoT; OMBUDSMAN, JCPAA & ANAO

TAX PRACTITIONERS BOARD & LEGISLATION

Commercial law requirements for tax agents – transitional arrangements [52]

Tax practitioners mostly aware of the Tax Practitioners Board’s role, but between 19% and 43% think it gives technical tax or accounting advice [53]

Re Li and Tax Practitioners Board – Termination of tax agent registration: stay refused [54]

 

 

STATE TAXES

Legislation & Announcements (State)

ACT: FHOG and duty deferral – Bill awaits notification [55]

SA: Succession Duties Repeal Bill – introduced [56]

Tas: Taxation and Related Legislation (Miscellaneous Amendments) Bill – passes Lower House [57]

WA: Budget Bill awaits Assent [58]

WA stamp duty: prescribed transactions that are not dutiable transactions [59]

 

Cases (State)

NSW payroll tax: Lombard Farms Pty Ltd v Chief Comr of State Revenue – taxpayer wins appeal for de-grouping request – discretion matter of judgment [60]

NSW land tax: Jamsapi Pty Ltd v Chief Comr of State Revenue – primary production land tax exemption refused [61]

WA payroll tax: Wyn Recruitment Pty Ltd and Comr of State Revenue – penalty tax for late lodgment affirmed, no further remission [62]

 

Rulings & Other (State)

Qld stamp duty: securities; family businesses; adjudication fees – public rulings updated [63]

SA stamp duty: no administrative fee on refunds – Information Circular [64]

Vic stamp duty: reminder to pay duty within 30 days [65]

 

OTHER DEVELOPMENTS

OECD presents G20 Leaders with proposal to tackle tax evasion [66]

G20: Automatic exchange of information by 2015 [67]

eBay power sellers and businesses registered on the ABR: social security and tax data-matching program [68]

ASIC focus on failed companies in illegal phoenix activity surveillance [69]

KPMG’s Family business survey – businesses vital but unprepared for succession [70]

 

 

THE END

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