Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

Sladen Snippet – Due date for SMSF 2016/17 tax returns extended to 2 July 2018

The ATO has announced the extension of the lodgment date for self managed superannuation (SMSF) annual returns for the 2016/17 year to 30 June 2018. Because 30 June 2018 falls on a Saturday, the ATO has confirmed the lodgment can occur on Monday 2 July 2018 without penalties.  

Sladen Snippet - Recent case: GST is a four-letter word

Sladen Snippet - Recent case: GST is a four-letter word

The Victorian Court of Appeal recently successfully allowed an appeal from the Supreme Court concerning the GST treatment of a property sale. The decision, in fact both decisions, illustrate the importance of ensuring that the contract of sale correctly sets out whether the price includes or excludes GST and the required due diligence including legal advice needed before signing such contracts.

Trust vesting: draft ATO Ruling on trust vesting

Trust vesting: draft ATO Ruling on trust vesting

The Commissioner issued Draft Taxation Ruling TR 2017/D10 “Income Tax: Trust Vesting – amending the vesting date and consequences of a trust vesting” on 13 December 2017.

The views in TR 2017/D10 are not materially different from those expressed at recent public forums, although TR 2017/D10 states those views in an administratively binding form and provides further detail (including several examples).

Foreign trusts, capital gains, and Australian beneficiaries – ATO finalises view

Foreign trusts, capital gains, and Australian beneficiaries – ATO finalises view

The Australian Taxation Office (ATO) finalised Tax Determinations TD 2017/23 and TD 2017/24 on 13 December 2017. Released in draft in November 2016, the Determinations consider certain aspects of the interaction of the capital gains provisions and the trust assessing provisions in Division 6 as those provisions apply to foreign trusts. In particular, where a foreign trust makes a capital gain on assets that are not taxable Australian property (TAP) and distributes that gain to Australian beneficiaries.

Sladen Snippet - What is “market value” for the purpose of the MNAV test

Sladen Snippet - What is “market value” for the purpose of the MNAV test

In Commissioner of Taxation v Miley, the Federal Court overturned decision of the Administrative Appeals Tribunal (AAT) concerning the share valuation method for the purposes of the maximum net asset value (MNAV) test in s 152-15 of the Income Tax Assessment Act 1997.

Sladen Snippet - ATO to disclose overdue tax debts to credit agencies

Sladen Snippet - ATO to disclose overdue tax debts to credit agencies

In the 2016-2017 Economic and Fiscal Outlook (http://www.budget.gov.au/2016-17/content/myefo/download/09-Appendix-A-Revenue.pdf), the Government announced that the Australian Taxation Office (ATO) would be allowed to report to credit reporting agencies the tax debt information of entities that don’t effectively engage with the ATO to manage those tax debts.

Sladen Snippet: TD 2017/20 confirms the ATO interpretation of “distributes” for the purpose of the FTDT

Sladen Snippet: TD 2017/20 confirms the ATO interpretation of “distributes” for the purpose of the FTDT

As previously reported in June this year, the Australian Taxation Office (ATO) published the Draft Taxation Determination TD 2017/D1 altering their previous published interpretation of the meaning of “distributes” for the purposes of the family trust distribution tax (FTDT).

The draft tax determination has now been published in its final form as TD 2017/20, confirming that FTDT can apply where there is a “distribution” to a person who is not a beneficiary of the trust.

Sladen Snippet - GST: new rules for purchasers of new residential premises and new subdivisions of potential residential land

Sladen Snippet - GST: new rules for purchasers of new residential premises and new subdivisions of potential residential land

Following an announcement in the 2017 Budget (see our article here), the Government on 6 November 2017 released exposure draft legislation which if enacted will, subject to a transitional rule (below), require from 1 July 2018 that purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land pay 1/11 of the purchase price directly to the Australian Taxation Office (ATO) at settlement. The 1/11 of the purchase price is irrespective of whether the margin scheme or otherwise applies to calculate the actual GST liability.

Sladen Snippet - foreign residents accessing the main residence CGT exemption – current status of this measure?

Sladen Snippet - foreign residents accessing the main residence CGT exemption – current status of this measure?

In the 2017 Budget on 9 May 2017, the Government announced a proposed change to the CGT main residence exemption as that exemption applies to foreign and temporary tax residents.  If enacted the announced change removed the CGT main residence exemption for foreign and temporary tax residents with effect from Budget night (9 May 2017). 

Sladen Snippet - Differential streaming of franked dividends and franking credits case granted special leave

Sladen Snippet - Differential streaming of franked dividends and franking credits case granted special leave

On 23 October 2017, the Commissioner was granted special leave to appeal to the High Court against the Full Federal Court’s decision from earlier this year in Thomas v Commissioner of Taxation 2017 FCAFC 57.

Case illustrates primacy of Part IVC in challenging assessments

Case illustrates primacy of Part IVC in challenging assessments

The strength of the Commissioner of Taxation’s (Commissioner) hand in raising taxation assessments, and the difficulties taxpayers face in challenging a taxation assessment other than under Part IVC of the Taxation Administration Act 1953 (Administration Act) has again been illustrated in the Federal Court decision of Chhua v Commissioner of Taxation [2017] FCA 1127 (Chhua).

Sladen Snippet - e-Contracts that work: a game changer for the property development industry

Sladen Snippet - e-Contracts that work: a game changer for the property development industry

Partnering with our client Resi Ventures, Sladen Legal has rolled out e-Contracts for use in sales at the Accolade and Monument estates. The use of e-Contracts aligns with Resi Ventures’ goals of implementing fresh ideas and best practices in creating communities and the way it deals with its customers.

Unfair contract terms – is your business compliant?

Unfair contract terms – is your business compliant?

In the space of a fortnight, the Australian Competition and Consumer Commission (ACCC) has commenced two sets of proceedings in the Federal Court against large Australian businesses, claiming breaches of the unfair contract provisions applicable to standard form small business contracts contained in the Australian Consumer Law.

Court rules on “present entitlement” and “disclaimer of entitlement” to trust income

Court rules on “present entitlement” and “disclaimer of entitlement” to trust income

The concept of “present entitlement” within the meaning of section 97 of the Income Tax Assessment Act 1936 and validity of a “disclaimer of entitlement of income” were considered by the Full Federal Court in the recent case of Lewski v Commissioner of Taxation [2017] FCAFC 145 (Lewski) that illustrates the importance of having trust law and taxation law concepts properly aligned. Lewski was an appeal from a decision of the Administrative Affairs Tribunal.