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.

Private companies to benefit from extension of crowd-sourced equity funding legislation

Private companies to benefit from extension of crowd-sourced equity funding legislation

The Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 was introduced into Parliament on 14 September 2017.  If passed, as is expected, the Bill will extend the reach of the Crowd-sourced Equity Funding (CSEF) legislation that will at this stage apply only to public companies from 29 September 2017.

Secure IP rights overseas and obtain financial assistance with the Export Market Development Grant

Secure IP rights overseas and obtain financial assistance with the Export Market Development Grant

Businesses exporting products around the world can now apply for the Export Market Development Grant (EMDG). Applications can be completed and submitted online up until 30 November 2017.

Increased CGT discount for affordable housing with a sting-in-the-tail

Increased CGT discount for affordable housing with a sting-in-the-tail

On 14 September 2017, the Government released for public consultation exposure draft legislation to implement the announcement in the 2017 Budget that from 1 January 2018 the CGT discount for eligible resident investors in qualifying affordable housing to 60% (from 50%). The change is part of the government’s policy to encourage increased investment in affordable rental housing.

Proposed laws targeting illegal phoenix activity

Proposed laws targeting illegal phoenix activity

The Federal Government has this week announced a number of proposed reforms aimed at those individuals, entities and advisors who undertake or facilitate illegal phoenix activity.

ATO provides a “safe harbour” for fixed trusts

ATO provides a “safe harbour” for fixed trusts

The Australian Taxation Office (ATO) published the final version of the Practical Compliance Guidelines (PCG) 2016/16, which provides guidance in relation to what will be considered by the Commissioner when exercising his discretion to treat an interest in the income or capital of a trust as being a fixed entitlement and by extension whether a trust is a fixed trust for the purposes of the tax law.