When involved in a dispute with the Australian Taxation Office (ATO), dealing with the interest and penalties that may be imposed by the ATO in relation to a tax liability by seeking remission of those amounts, objecting, or having a reasonably arguable position opinion can be an important part of any dispute resolution strategy.
The ‘economic entitlement’ provisions are unique in Victoria. Pursuant to the amendments to the legislation as part of the Victorian 2019/20 budget, from 19 June 2019 these provisions now apply to impose duty where an economic entitlement is acquired in relation to Victorian land and any Victorian landholding entity.
Treasury has released exposure draft Taxation Administration (Private Ancillary Fund) Guidelines 2019 (2019 Guidelines), in anticipation of the sunsetting of Private Ancillary Fund Guidelines 2009, which is scheduled to occur on 1 October 2019.
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. We will always advise a client to seek to engage with the ATO to resolve a tax dispute, when possible.
In Watson as trustee for the Murrindindi Bushfire Class Active Settlement Fund v Commissioner of Taxation  FCA 228 (Watson), the Federal Court ruled that an investment trust established to hold funds received as compensation for victims of the black Saturday bush fires could not deduct administrative expenses associated with the trust’s operation.
We previously reported here and here on the Full Federal Court decision of Pintarich v Deputy Commissioner of Taxation  FCAFC 79 (Pintarich) and the unsuccessful application for special leave to the High Court.
Sladen Legal is pleased to announce that the 2016 version of the Trust Structures Guide (written by Sladen Legal and published by The Tax Institute) is now available.
The Trust Structures Guide has long been considered to be invaluable guide for professionals advising on structuring and tax matters relating to trusts.
It discusses draft Taxation Ruling TR 2015/D2 and the Australian Taxation Office’s proposed treatment of trust unpaid present entitlements for the purposes of the maximum net asset value test applicable to the capital gains tax small business concessions.
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.
Division 7A of the Income Tax Assessment Act 1936 can operate to deem a dividend to be paid by a private company that is a subsidiary member of an income tax consolidated group (subsidiary).
If a subsidiary makes a loan to a shareholder (of the Head Company of the tax consolidated group) or their associate in a manner that evokes the application of the “deemed dividend” provisions in s 109D, the relevant time for complying with the Division 7A provisions would be the “lodgment day” of the Subsidiary’s income tax return for the relevant financial year (s 109D(1)(b)) – however, a Subsidiary member of a tax consolidated group is not required to lodge an income tax return.