Beware of the Fork in the Road: Taxation and Cryptocurrency Chain Splits

Beware of the Fork in the Road: Taxation and Cryptocurrency Chain Splits

The Federal Commissioner of Taxation  (Commissioner) recently updated his guidelines on cryptocurrency and for the first time addressed the taxation of cryptocurrency acquired as the result of a chain split.  

TD 2018/13 - a commercial transaction may not stop Division 7A

TD 2018/13 -  a commercial transaction may not stop Division 7A

The Australian Taxation Office (ATO) recently released Taxation Determination TD 2018/13 (TD 2018/13) confirming its view that the (often overlooked) interposed entity provisions in section 109T of Division 7A of the Income Tax Assessment Act 1936 can apply to ordinary commercial transactions.

Trusts, Income Tax, CGT And Foreign Residents

Trusts, Income Tax, CGT And Foreign Residents

The rules for the taxation of trusts are complex and in need of reform. A point that has been made many times since Hill J observed in Davis v FCT1 that “the scheme of Division 6 calls out for legislative clarification, especially since the insertion into the Act of provisions taxing capital gains as assessable income”.

Sladen Snippet - Illegal Phoenix Activity – Modernising Business Registers and the new Phoenix Hotline

Sladen Snippet - Illegal Phoenix Activity – Modernising Business Registers and the new Phoenix Hotline

On 9 May 2018 we reported to you new initiatives regarding proposed laws targeting illegal phoenix activity (https://sladen.com.au/news/2018/5/9/sladen-snippet-proposed-laws-targeting-illegal-phoenix-activity) announced by the Federal Government in the 2018/2019 Budget.  Consistent with the proposed measures announced under the budget, the Federal Government has now:

GST withholding: finalised ATO guidance does not even out the bumps

GST withholding: finalised ATO guidance does not even out the bumps

GST withholding on taxable supplies of certain new residential premises or potential residential land is now in effect and applies to contracts entered into on or after 1 July 2018 (or contracts before that date where the first consideration other than the deposit is paid on or after 1 July 2020).

Corporate tax residency – tax ruling highlights the need for foreign companies to manage residency risk

Corporate tax residency – tax ruling highlights the need for foreign companies to manage residency risk

Foreign companies that may be controlled by an Australian entity should review their key decision-making procedures following the newly issued Australian Taxation Office (ATO) Taxation Ruling, TR 2018/5 (TR 2018/5) which gives guidance on when the ATO could find a foreign company’s central management and control (CMC) is located in Australia.

The Cryptocurrency Boom – All That Glitters is Not Gold

The Cryptocurrency Boom – All That Glitters is Not Gold

For the purpose of this article “cryptocurrency” refers to all digital currency assets including, but not limited to, Bitcoin (BTC) and altcoins including Bitcoin Cash (BTH), Ripple (XRP), NEM, Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dash (DASH), Monero (XMR) and Z Cash (ZEC).

Sladen Snippet - Government to consider individual tax residency rules

Sladen Snippet - Government to consider individual tax residency rules

On 9 July 2018, in a Media Release, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, announced the release of the self-initiated Board of Taxation report, dated August 2017, on a new tax residency model for individuals.  Minister O’Dwyer requested further analysis and consideration on the key recommendations before the Government takes a position on this matter. 

The Bitcoin Rush: A taxing issue for pioneers

The Bitcoin Rush: A taxing issue for pioneers

The Federal Commissioner of Taxation  (Commissioner) recently updated his guidelines on cryptocurrency addressing some of the many questions that have been raised. However, these guidelines offer little assistance for early adopters of cryptocurrency who find themselves in a unique position.

Decisions, decisions, decisions: when does the Commissioner make a ‘decision'?

Decisions, decisions, decisions: when does the Commissioner make a ‘decision'?

The recent Full Federal Court decision of Pintarich v Deputy Commissioner of Taxation [2018] FCAFC 79 dismissing the taxpayer’s appeal, considered whether a letter (the ATO Letter) from the Australian Taxation Office (ATO) purportedly remitting the taxpayer’s general Interest charge (GIC) amounted to a ‘decision’ by the Commissioner of Taxation (Commissioner). 

Sladen Snippet - Possible delayed start date of the changes to CGT small business concessions

Sladen Snippet - Possible delayed start date of the changes to CGT small business concessions

On 21 June 2018, Senator David Leyonhjelm of the Liberal Democratic Party Treasury proposed in the Senate that the amendments to the CGT small business concessions in the Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018 (the Bill) apply, if passed, from 8 February 2018 (when the Bill was released in Exposure Draft form) rather than 1 July 2017 (as originally announced in the May 2017 Budget).

Sladen Snippet - I still call Australia home: recent decision illustrates the difficulty of Australian expatriates arguing their ‘permanent place of abode’ is overseas

Sladen Snippet - I still call Australia home: recent decision illustrates the difficulty of Australian expatriates arguing their ‘permanent place of abode’ is overseas

The recent Federal Court decision of Harding v FCT [2018] FCA 837 illustrates the difficulties of an Australian expatriate arguing they were resident of a foreign country, and thereby not an Australian tax resident.