ATO

Tax Disputes: Part 3 - Settlements

Tax Disputes: Part 3 - Settlements

When involved in a dispute with the Australian Taxation Office (ATO), the possibility of resolving that dispute by way of settlement should always be carefully considered including what approach should be taken in negotiating with the ATO to get the best outcome for taxpayers.

Lost but not forgotten? The ATO’s position on Lost and Stolen Cryptocurrency

Lost but not forgotten? The ATO’s position on Lost and Stolen Cryptocurrency

The anonymity central to the very nature of cryptocurrency means that if access details are misplaced, they are often lost forever. Despite the continual development of new online wallets and marketplaces to acquire, store and transmit cryptocurrency, the potential for theft of cryptocurrency remains.

Tax Disputes: Part 2 – Voluntary disclosures

Tax Disputes: Part 2 – Voluntary disclosures

When involved in a dispute with the Australian Taxation Office (ATO), it is always in a clients’ best interest to seek to either resolve or narrow and define the relevant issues in dispute as quickly and efficiently as possible. 

Sladen Snippet: ATO to begin data matching program on cryptocurrency holdings

Sladen Snippet: ATO to begin data matching program on cryptocurrency holdings

The Federal Commissioner of Taxation (Commissioner) has given notice that the Australian Taxation Office (ATO) will commence a data matching program on cryptocurrency.

Draft Tax Determination highlights the risks of back-to-back CGT Roll-overs.

Draft Tax Determination highlights the risks of back-to-back CGT Roll-overs.

We have previously written on the ATO releasing guidance on demergers and back-to-back CGT roll-overs. The ATO recently released Draft Taxation Determination TD 2019/D1 concerning demergers although the ATO’s draft views may be illustrative of the Commissioner’s views in the context of back-to-back CGT rollovers.

Sladen Snippet - Tax audits on rental properties

Sladen Snippet - Tax audits on rental properties

As reported recently by The Age and ABC News, the Australian Taxation Office (ATO) is targeting property investors particularly taxpayers who may have made mistakes, errors or false claims on their tax returns in relation to property owned for investment purposes.

If you don’t ask, you’ll never know: Pedley and allocation of payments made to the ATO

If you don’t ask, you’ll never know: Pedley and allocation of payments made to the ATO

In Deputy Commissioner of Taxation v Pedley (No 2) (2018) FCA 2015 (Pedley), the Federal Court confirmed the wide discretion available to the Australian Taxation Office’s (ATO) to allocate payments made to it for tax debts especially where the taxpayer has not provided explicit direction as to what payments should be applied to which debts.

Sladen Snippet - ATO changes it view on what is love and affection

Sladen Snippet - ATO changes it view on what is love and affection

On 6 February 2019, the Australian Taxation Office (ATO) withdrew its long-standing Interpretative Decision 2003/589 that a company can forgive a debt owed by a natural person for reasons of “natural love and affection” and not trigger consequences under the commercial debt forgiveness rules.

Sladen Snippet – Super contribution caps, rates and thresholds for 2016/17 year released

Sladen Snippet – Super contribution caps, rates and thresholds for 2016/17 year released

The Australian Taxation Office (ATO) has released key super contribution caps, rates and thresholds for the 2016/17 year. These include:

  • Concessional contribution caps – for persons aged less than 49 on 30 June 2016 the cap will remain at $30,000 -  for persons aged 49+ on 30 June 2016 the higher cap of $35,000 will apply;
  • Non-concessional contributions cap- will remain at $180,000, while the “bring forward” cap will remain at $540,000;
  • CGT contributions cap - will increase to $1,415,000.
  • Super guarantee maximum super contribution base- will increase to $51,620 per quarter, while the super guarantee rate will remain at 9.5%;
  • Lump sum low rate cap- will increase to $195,000.

Sladen Snippet – non-commercial LRBA loans must be rectified with effect from 1 July 2015

Sladen Snippet – non-commercial LRBA loans must be rectified with effect from 1 July 2015

In our previous Sladen Snippet, we confirmed that the Australian Taxation Office (ATO) will not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016, but that such LRBA loans should be put on arm’s length terms by 30 June 2016. If that occurs then the ATO has stated that it will not actively review such non-commercial LRBAs in prior years.

Sladen Snippet – Non-commercial LRBA loans must be rectified by 30 June 2016

Sladen Snippet – Non-commercial LRBA loans must be rectified by 30 June 2016

The Australian Taxation Office (ATO) has confirmed that it will not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016.

Self Managed Superannuation Fund (SMSF) trustees are being encouraged to rectify their non-commercial LRBA loans by putting them on arm’s length terms by 30 June 2016. If that occurs then the ATO has confirmed that it will not actively review such non-commercial LRBA loans in prior years. Although not expressly stated on the ATO’s website, the ATO has indicated that such rectification does not need to be retrospective.

The ATO’s proposed treatment of unpaid present entitlements: Part 1

The ATO’s proposed treatment of unpaid present entitlements: Part 1

In August 2015, Part 1 of a 2 part series written by Sladen Legal's Renuka Somers and Ashleigh Eynaud was published in the Tax Institute’s Journal, Taxation in Australia.

It discusses some of the unresolved issues and complexities associated with the taxation treatment of trust unpaid present entitlements for Division 7A purposes and bad debt write-offs, despite the Australian Taxation Office’s attempts to address these matters in draft Taxation Determinations TD 2015/D4 and TD 2015/D5.

Deficient valuations: Tax penalties for false or misleading statements – are you liable?

Deficient valuations: Tax penalties for false or misleading statements  – are you liable?

The Australian Taxation Office (ATO) has published guidance on penalties that could apply for deficient valuations. Valuations for income tax purposes of assets such as real property, shares in companies and units in unit trusts, are relevant in a number of contexts, including the capital gains tax provisions, the maximum net asset value test, the market value substitution rule, the GST Margin Scheme, and for assets held in self-managed superannuation funds.

The ATO warns that taxpayers who undertake their own property valuations or use valuations from unqualified people may be liable to pay administrative penalties where the valuations later prove to be deficient.

Collection of a Consolidated Group’s Tax Liabilities

Collection of a Consolidated Group’s Tax Liabilities

On 7 November 2013 the ATO released a Practice Statement (Practice Statement Law Administration 2013/5 (PS LA 2013/5)) which details the Commissioner’s policy (previously included in Chapter 35 of the ATO’s Receivables Policy) in relation to:

  1. the collection of group liabilities from the Head Company, member entities and entities that have exited a Consolidated Group;
  2. Tax Sharing Agreements (TSAs); and
  3. the requirements for a member entity to make a “clear exit” from the Group.

 

New Commissioner of taxation – New emphasis on Alternative Dispute Resolution

New Commissioner of taxation – New emphasis on Alternative Dispute Resolution

In his address at the Tax Institute’s 28th Annual Convention in Perth on 14 March this year, the newly appointed Commissioner of Taxation, Chris Jordan (Commissioner) prioritised the increasing use of dispute resolution processes to resolve taxpayer disputes in a timely manner.