Pike: Full Court applies DTA and finds taxpayer is not an Australian tax resident
Over the last 18 months several decisions of the Administrative Appeals Tribunal, Federal and Full Federal Courts considered the application of Australian tax residency laws including Harding v FCT [2019] FCAFC 29, FCT v Addy [2020] FCAFC 135, Stockton v FCT [2019] FCA 1679, Handsley v FCT [2019] AATA 917 and Coelho v FCT [2020] AATA 2474.
JobKeeper 2.0 is go!
ATO provides clarity on obligations of SMSF auditors in respect of NALE and NALI
The ATO has provided some welcome clarification for auditors regarding their obligations to report on non-arm’s length expenditure (NALE) incurred by a super fund of a general nature.
Eichmann: Full Court holds that land is a small business active asset
In our earlier articles we discussed the Administrative Appeals Tribunal (AAT) and Federal Court decisions in Eichmann v FCT [2019] AATA 162 and FCT v Eichmann [2019] FCA 2155. The Full Federal Court in Eichmann v FCT [2020] FCAFC 155 recently allowed the taxpayer’s appeal of the Federal Court decision.
The end of the superannuation guarantee amnesty – so what now for employers?
As discussed here and here, the superannuation guarantee (SG) amnesty allowed employers to disclose and pay previously unpaid SG charge, including nominal interest, for the quarters between 1 July 1992 to 31 March 2018 without incurring the administration component ($20 per employee per quarter) or Part 7 penalties. In addition, payments of SG charge made to the ATO under the amnesty were tax deductible.
Sladen Snippet - ATO confirms that auditors must report COVID-19 contraventions
LinkedIn profile is not an offer or invitation under the PSI rules
On 17 August 2020, the Full Federal Court handed down its decision in FCT v Fortunatow [2020] FCAFC 139 allowing the Commissioner’s appeal from the decision of Griffiths J of the Federal Court and finding Griffiths J had erred in his construction of section 87-20(1)(b) of the Income Tax Assessment Act 1997 (ITAA 97).
Sladen Snippet – Addy – ATO wins backpacker tax case in the Full Federal Court
As we discussed in Coelho v FCT [2020] AATA 2474, different tax rates apply to residents and non-residents. Further, under Pt III of Sch 7 to the Income Tax Rates Act 1986, a working holiday maker pays tax at 15% on the first $37,000 of income in Australia. Commonly referred to as the ‘backpacker tax’.
Sladen Snippet - ATO releases PSLA in relation to when it will remit super guarantee penalties once the amnesty period ends
In anticipation of the conclusion of the superannuation guarantee (SG) amnesty (discussed here) on 7 September 2020, the Australian Taxation Office (ATO) has released a draft Law Administration Practice Statement PS LA 2020/D1 (PSLA 2020/D1) in relation to how, post amnesty, the ATO officers may exercise their discretion to remit Part 7 penalties.
Sladen Snippet - ATO releases draft legislative instrument to deal with in-house asset issues for SMSFs offering rent deferrals to related party tenants
The Australian Taxation Office (ATO) has released a welcome draft legislative instrument, Self Managed Superannuation Funds (COVID-19 Rental income deferrals - In-house Asset Exclusion) Determination 2020 (SPR 2020/D2), that will exclude COVID-19 related rental deferrals from being ‘loans’ under the in-house asset rules.
Sladen Snippet - JobKeeper 1.0 extension – new employees from 1 July 2020
Sladen snippet - dentist found to be “employee” for the purposes of superannuation guarantee
In the recent decision of Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) , the Full Federal Court found that a dentist fell within the extended definition of ‘employee’ under s12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth) (SG Act). Section 12(3) broadly provides that an employee is a person who is working ‘under a contract that is wholly or principally for the labour of the person.’
Sladen Snippet – Taxpayer Appeals Federal Court Decision in Eichmann
In our earlier article, we noted the Federal Court in FCT v Eichmann [2019] FCA 2155 (Eichman) in late 2019 had found in favour of the Australian Taxation Office (ATO) (appealing a decision of the Administrative Appeals Tribunal) and held land used for storage was not an active asset for the purposes of the small business capital gains tax (CGT) concessions in Division 152 of the Income Tax Assessment Act 1997 (ITAA 1997).
Managing Tax and Revenue Office Audits During COVID-19
Sladen Snippet: Division 7A and COVID-19: ATO announces streamlined process to kick the can down the road
Sladen snippet - Certain JobKeeper payments don’t trigger superannuation guarantee – regulations made
As part of the broader framework of the JobKeeper scheme (discussed here) established by the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020, the Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020 (Amending Regulations) have now been made.
Are you conducting a business in partnership? Make sure you can substantiate your commercial arrangement.
The recent Administrative Appeals Tribunal (AAT) decision of Holman v FCT highlights once again the importance of documentation and maintaining objective factual evidence to discharge the statutory burden of proof when disputing an assessment.
Sladen snippet - Legislative Instrument permits LRBA borrowings by the bare trustee
As previously discussed here, the ATO has now finalized the Superannuation Industry (Supervision) In-house Asset Determination — Intermediary Limited Recourse Borrowing Arrangement Determination 2020 (Determination).
Sladen Snippet: legislation introduced to increase the age at which work test applies from 65 to 67
As part of the 2019-20 Budget and as previous discussed here, the Australian Government announced that Australians over age 65 would have greater flexibility in making voluntary concessional and non-concessional superannuation contributions from 1 July 2020.