Section 99B, the “sequel” to 2022’s s 100A focus, may make taxpayers and advisers wish they had a bigger boat.

The ATO has a new collaborative and tailored approach to managing the collection and recovery of disputed debts.

Sladen Legal has been recognised as a Third Tier Leading Tax Law Firm – Victoria, 2023 in the recently released Doyles Guide Victoria, 2023. Doyles Guide is a comprehensive and independent directory which showcases Australia’s best firms and lawyers.

In an “unusual outcome” concerning a main residence, the AAT has highlighted the breadth of what constitutes a profit-making scheme and the functionality of ATO public rulings.

If 16 December 2009 was the beginning of the Australian Taxation Office (ATO) treating an unpaid present entitlement (UPE) with a corporate beneficiary as a loan for purposes of Division 7A, could 28 September 2023 be the end of that era?

The ATO has taken an aggressive approach on non-arm’s length income (NALI) for a number of years now, both in its public documents and via its audit teams. This has culminated in an approach that puts a high expectation on SMSF’s in relation to proving arrangements are on an arm’s length basis – in particular, in relation to benchmarking such arrangements.

The Full Federal Court in the BBlood appeal found for the ATO on section 100A and the taxpayer dividend stripping (albeit on a technical, non-substantive basis).

The 100A analysis was limited to ‘tax avoidance purpose’ with the Full Court holding that, in certain circumstances, the purpose of advisors can be relevant.

The 2023-2024 Victorian State Budget was delivered by the Victorian Government on 23 May 2023.

It is well known that Division 7A of the Income Tax Assessment Act 1936 can apply to distributions or benefits provided by a company to a shareholder or associate, or a company that has an unpaid present entitlement from a trust.

As a result of recent changes to the work test, a technical deficiency was identified, such that, persons who are not common law employees, like directors and politicians, could no longer make personal deductible superannuation contributions.

During the stages of administration of a deceased estate, a beneficiary may become presently entitled to the income. It is important to recognise this to determine who is responsible for the payment of income tax on that income.

The High Court has confirmed that, in certain circumstances, the presumption of advancement can apply to contributions to the purchase price of property or the transfer of assets.

When a company becomes presently entitled to trust income, it is imperative that the rules in Division 7A of the Income Tax Assessment Act 1936 are front and square in the minds of the trustees and their advisors.

Trusts are generally known to have a flexibility that can achieve favourable tax outcomes, whether used as a vehicle for operating a business or as the entity to hold investments.

This time last year, we published an article querying whether the Federal Court decision in Guardian AIT Pty Ltd ATF Australian Investment Trust v FCT [2021] FCA 1619 (First Instance Decision) would ignite an administrative and judicial quest for clarity on the interpretation of section 100A of the Income Tax Assessment Act 1936 (ITAA 1936).

On 23 November 2022, the Australian Tax Office (ATO) released Taxation Ruling TR 2022/3, finalising its views on personal services income (PSI) and personal services businesses (PSB).

The High Court in Bosanac v Commissioner of Taxation [2022] HCA 34 culminated a protracted debate on whether to apply the presumption of resulting trust or presumption of advancement in the context of a matrimonial home.

Sladen Legal has been recognised as a Third Tier Leading Tax Law Firm – Victoria, 2022 in the recently released Doyles Guide Victoria, 2022. Doyles Guide is a comprehensive and independent directory which showcases Australia’s best firms and lawyers.

Discretionary trusts are common structures for family businesses. How do we effectively transition these structures to the next generation?

On 19 September 2022, Justice Thawley of the Federal Court handed down his decision in BBlood Enterprises Pty Ltd v FCT [2022] FCA 1112 (BBlood), the most recent decision on section 100A of the Income Tax Assessment Act 1936. The Australian Taxation Office (ATO) was successful in arguing that section 100A applied.