Payroll Tax Part 3: Are Business Profits and Distributions Subject to Payroll Tax?

Payroll Tax Part 3: Are Business Profits and Distributions Subject to Payroll Tax?

It is common for many shareholders to also be workers and/or employees of a business. However, as a general rule, payments made to the persons in their capacity as shareholders are not subject to payroll tax.

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LinkedIn profile is not an offer or invitation under the PSI rules

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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).

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Sladen Snippet – Addy – ATO wins backpacker tax case in the Full Federal Court

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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’.

Payroll Tax Part 2: Director Fees

Payroll Tax Part 2: Director Fees

In this is Part 2 in a series of articles by our State Tax Team we examine how and when payroll tax is payable on directors’ fees. Payroll tax is a state-based tax imposed on a business where taxable wages exceed relevant state or territory thresholds.

Sladen Snippet - Sweet victory for Mondelez after High Court rules on the meaning of ‘day’ for personal / carer’s leave

Sladen Snippet - Sweet victory for Mondelez after High Court rules on the meaning of ‘day’ for personal / carer’s leave

In a significant victory for Australian employers, the High Court has ruled in favour of Cadbury manufacturer Mondelez Australia Pty Ltd clarifying the meaning of the word “day” in the context of personal/carer’s leave entitlements under the Fair Work Act 2009 (Cth) (FW Act).

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Capital gains, discretionary trusts, and foreign residents – round 2 to the ATO

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Capital gains, discretionary trusts, and foreign residents – round 2 to the ATO

We wrote here on the decision of Thawley J of the Federal Court in Peter Greensill Family Co Pty Ltd (trustee) v FCT (Greensill) where the Commissioner of Taxation was successful in arguing that section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997) does not disregard a capital gain distributed to a foreign resident beneficiary of an Australian discretionary trust. The taxpayer has appealed that decision to the Full Federal Court.

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Sladen Snippet - Free streamlined extensions of time available at IP Australia

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Sladen Snippet - Free streamlined extensions of time available at IP Australia

IP Australia is providing applicants with an opportunity to file a free streamlined extension of time of up to three months due to the COVID-19 disruptions.

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Sladen Snippet - ATO releases PSLA in relation to when it will remit super guarantee penalties once the amnesty period ends

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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.

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Sladen Snippet - ATO releases draft legislative instrument to deal with in-house asset issues for SMSFs offering rent deferrals to related party tenants

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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.

Software Developers And Advertising Services Are High Performing Copyright Industries

Software Developers And Advertising Services Are High Performing Copyright Industries

A new report on the economic contribution of Australia’s copyright industries identifies software developers and advertising services as high performing copyright industries.

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Sladen Snippet - Coelho v FCT – foreign nationals in Australia for more than 183 days not Australian tax residents

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Sladen Snippet - Coelho v FCT – foreign nationals in Australia for more than 183 days not Australian tax residents

An individual in Australia for more than 183 days for an income year, whether continuously or intermittently, is an Australian tax resident unless the Commissioner of Taxation is satisfied the individual’s usual place of abode is outside Australia and the individual does not intend to take up residence in Australia.

Sladen Snippet - Chadbourne – Administrative Appeals Tribunal disallows tax deductions for interest on loans

Sladen Snippet - Chadbourne – Administrative Appeals Tribunal disallows tax deductions for interest on loans

In Chadbourne v FC of T [2020] AATA 2441 (Chadbourne) the Administrative Appeals Tribunal (AAT) held that a beneficiary (Taxpayer) of a discretionary trust (Trust) was unable to deduct interest on borrowed funds where the funds borrowed in the Taxpayer’s name were used by the Trust to buy real property and shares.