As reported in our earlier article on Harding v FCT [2018] FCA 837, the Federal Court ruled that the taxpayer who lived and worked in Bahrain was an Australian tax resident.

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 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).

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.

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).

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 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.

The legislation to pass the government’s proposed amnesty for super guarantee has failed to pass the senate in the June 2018 sittings.

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). 

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).

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.

With seven sitting days left in the current financial year, the Tax Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 (the Bill), that proposes to deny the lower 27.5% corporate tax rate to corporate tax entities with less than $25 million of turnover that derive predominantly (80% or more) passive income has not been debated by the Parliament since 12 February 2018. This Bill, if passed and assented to, will apply from 1 July 2017. That is, for the current income year.

Australia is obligated under Automatic Exchange of Information (AEOI) regimes to automatically exchange financial account information with foreign jurisdictions.

Sladen Legal recently held an event at the RACV club titled 'Regulatory overreach, more red tape or business as usual?'

On 17 May 2018, the ATO updated its practice statement (PS LA 2008/6) providing for a more robust and comprehensive process before the Commissioner can form an opinion there has been fraud or evasion.  Where the Commissioner forms an opinion there has been fraud or evasion by a taxpayer in a particular income year, he then has an unlimited amendment period in which to raise an amended assessment outside of the usual 2 or 4-year time limits.

A taxpayer has been charged with offences after losing a Victorian Court of Appeal case in which the taxpayer argued that the Australian Taxation Office (ATO) could not prove service of a final notice requiring him to lodge four outstanding income tax returns by a specified date.

The recent Federal Court decision of Rowntree v FCT [2018] FCA 182, (Rowntree) dismissing the taxpayer’s appeal, considered whether amounts received by the taxpayer were income rather than loan receipts.

The tax focus of last night’s Budget speech and the associated media coverage was on personal income tax cuts and measures aimed at large companies and the black economy.

The Commissioner of Taxation (Commissioner) has power pursuant to section 255-15(1) of Schedule 1 of the Taxation Administration Act 1953 to permit a taxpayer to pay its tax-related liability by instalments in accordance with a payment arrangement. The recent Federal Court decision of Stojic v Deputy Commissioner of Taxation [2018] FCA 483 (Stojic) dismissed an application by the sole director and shareholder of a company to review a decision by the Commissioner to decline to exercise that power illustrates two major points.

As we have previously reported, on 29 March 2018 the Treasury Laws Amendment (2018 Measures No. 1) Act amending the Taxation Administration Act 1953 (the Act) received Royal Assent.