Sladen snippet - ATO extends transitional compliance approach to NALE for another financial year
As previously discussed here, the definition of non-arm’s length income (NALI) under the Income Tax Assessment Act 1997 was amended in mid-2018 to include non-arm’s length expenses or NALE. NALE includes not just an expenditure, but also a loss or outgoing that is lower than an arm’s length amount, and also includes where there is a nil amount (ie, no expenditure).
Sladen Snippet - COVID relief measures: ATO confirms how LRBA relief interacts with Division 7A
As discussed here, as part of the ATO COVID-19 administrative concessions, the ATO announced that temporary repayment relief could be offered for limited recourse borrowing arrangements (LRBA) loans. The repayment relief must reflect similar terms to what commercial banks offered for real estate investments loans as a result of COVID-19.
Sladen Snippet - NSW Supreme Court holds manager of protected estate cannot make BDBN on behalf of protected person
Allocation of professional firm profits – the ATO moves the goalposts!
On 1 March 2021, the Australian Taxation Office (ATO) released Draft Practical Compliance Guideline PCG 2021/D2 Allocation of professional firm profits – ATO compliance approach (Draft PCG) that sets out the ATO’s proposed compliance approach to the allocation of profits by professional firms.
ATO’s Next 5,000 Audit Program – Our Top 5 Tips for how you can be ready
Sladen Snippet – do intermediary LRBAs count for the total super balance add back provisions?
An intermediary limited recourse borrowing arrangement (LRBA) differs from a standard LRBA in that the bare trustee, rather than the SMSF trustee, enters into an LRBA borrowing as principal with a lender.
Current Issues With LRBAs
Sladen snippet – High Court refuses leave to appeal finding that dentist is covered by super guarantee
As discussed here, the decision in Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) (Moffet) marked an important shift in how the courts have interpreted the employee/contractor distinction for the purposes of superannuation guarantee obligations.
Sladen snippet – share trading course not deductible for SMSF
The ATO has released a private binding ruling (Ruling) on the deductibility of certain expenses incurred by a self managed superannuation fund (SMSF) trustee in managing the SMSF’s share portfolio.
Sladen Snippet - ATO to resume super guarantee compliance action
Sladen Snippet - Government announces ability to commute market linked and legacy pensions
A surprise inclusion in the Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) could mean good news for recipients of certain non-commutable ‘legacy’ pensions.
Sladen Snippet - Court awarded damages in SMSF Property Development case
While SMSF trustees should be aware of the ATO’s concerns in relation to property development (for example, as outlined in SMSFRB 2020/1), a recent Full Court of the Supreme Court of South Australia has highlighted the commercial risks of such arrangement.
Sladen Snippet - ATO finalises legislative instrument to deal with in-house asset issues for SMSFs offering rent deferrals to related party tenants
As previously discussed here, the ATO has now finalised the legislative instrument Self-Managed Superannuation Funds (COVID-19 Rental income deferrals – In-house Asset Exclusion) Determination 2020 (Determination). The Determination does not materially differ from the draft version.
Sladen Snippet – payments to contractor not subject to superannuation guarantee
In the recent decision of MWWD v FC of T 2020 ATC (16 October 2020), the Administrative Appeals Tribunal (AAT) found that payments to a contractor repair technician did not trigger a superannuation contribution/charge obligation under the Superannuation Guarantee (Administration) Act 1992 (Cth) (SG Act).
Sladen Snippet – AAT denies out of time application to overturn disqualification under the SIS Act
Under the Superannuation Industry (Supervision) Act 1993 (SIS Act) a disqualified person cannot be a trustee or director of a corporate trustee of a self managed superannuation fund. Where a person is disqualified because of a conviction, they can apply for a waiver of the disqualification status within 14 days from the date of conviction.
