Legal news
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.
As has been standard fare for the property industry over the last few years, a new financial year will bring in a number of changes to the development and sales process. It is important that developers are aware of these changes, and begin taking steps to comply with the new requirements in order to avoid any delays or other adverse implications once the amendments take effect.
Today, the Expert Panel for annual wage reviews (Panel) of the Fair Work Commission (Commission) has held that it is appropriate to increase the modern award minimum wages by 3.5 per cent. The national minimum wage (NMW) will now be $719.20 per week (that is, $18.93 per hour). The determinations and order giving effect to the Panel’s decision will come into operation on 1 July 2018.
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.
The Government has released a bill that provides a “one off” 12 month amnesty to encourage employers to self-correct historical super guarantee non-compliance.
The Government has released a bill to “add back” limited recourse borrowing arrangement (LRBA) loans in the calculation of a member’s total superannuation balance (TSB).
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.
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 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.
The Government has announced a proposal to increase the maximum number of members that a self managed superannuation fund (SMSF) can have from 4 to 6.
