Welcome amendments to the ATO’s processes in forming a fraud and evasion opinion

Welcome amendments to the ATO’s processes in forming a fraud and evasion opinion

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.

Check your mail and ensure your mailing address is up to date! Don’t risk criminal offences with the ATO.

Check your mail and ensure your mailing address is up to date! Don’t risk criminal offences with the ATO.

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.

Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

Sladen snippet – Extension of NALI to non-arm’s length expenses measure before parliament

The Government has released a bill to extend the application of the non-arm’s length income (NALI) rules to income and capital gains gained or produced under arrangements involving non-arm’s length expenditure. The genesis of this measure was non-commercial limited recourse borrowing arrangement (LRBA) loans but the proposed legislation applies to all arrangements where there is non-arm’s length expenditure or costs and also to arrangements where assets are acquired for under market value consideration.

Lessons from Stojic: it is better to under promise and over deliver when negotiating payment arrangements with the ATO

Lessons from Stojic: it is better to under promise and over deliver when negotiating payment arrangements with the ATO

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.