We wrote that 2022 is the ‘Year of 100A’ after the Australian Taxation Office (ATO) released three guidance products, two in draft, on section 100A and the ATO’s appeal to the Full Federal Court from the decision of Logan J in Guardian AIT Pty Ltd ATF Australian Investment Trust v FCT [2021] FCA 1619 on section 100A.
FCT v Carter: trust disclaimers not effective for tax
In one sense, the High Court judgment in FCT v Carter [2022] HCA 10 (Carter) will come as welcome relief for tax advisors. That is, after dealing with the Australian Taxation Office’s (ATO) view of the ‘lore’ in the form of practical compliance guidelines, Carter turns minds back to the ‘law.’ Unfortunately, the law in Carter can result in unpleasant tax outcomes for certain trust beneficiaries.
2022: year of 100A
Quoting Winston Churchill, we said that the Federal Court decision in Guardian AIT Pty Ltd ATF Australian Investment Trust v FCT [2021] FCA 1619 (Guardian AIT) concerning section 100A of the Income Tax Assessment Act 1936 is perhaps the “end of the beginning” of what may become increased clarity on the judicial and administrative approach to that section.
Taxpayer Alert 2022/1: Parents benefitting from the trust entitlements of adult children
Draft Practical Compliance Guideline PCG 2022/D1: are you on the highway to hell?
After our semi-serious opening statement on the Australian Taxation Office’s (ATO) recently released guidance on section 100A and unpaid present entitlements, this is one of a series of deep-dive articles on that guidance.
Sladen Snippet - AAT agrees gain on complex share exchange transaction was revenue in nature
Draft Taxation Determination TD 2022/D1: much ado about nothing or a seismic shift?
After our semi-serious opening statement on the Australian Taxation Office’s (ATO) recently released guidance on section 100A and unpaid present entitlements, this is one of a series of deep-dive articles on that guidance. These articles look at each of the ATO guidance products separately and then we discuss what the overall impact may be.
Draft Taxation Ruling 2022/D1: Do people still listen to disco music?
After our semi-serious opening statement on the Australian Taxation Office’s (ATO) recently released guidance on section 100A and unpaid present entitlements, this is one of a series of deep-dive articles on that guidance. These articles look at each of the ATO guidance products separately and then we discuss what the overall impact may be.
Sladen Snippet - ATO draft guidance on deductibility of expenses in establishing employee share schemes
Draft ATO guidance on 100A and UPEs: is everything awesome?
Guardian AIT: section 100A – the end of the beginning?
Sladen Snippet - ATO decision impact statement on Addy ‘backpacker tax’ case
We have previously discussed Addy v FCT [2021] HCA 34 here. In this case, the High Court unanimously allowed Ms Addy’s appeal and found that a UK working holiday visa holder, who was a tax resident of Australia, was entitled to the tax-free threshold and taxation at the rate that applied to Australian resident nationals.
PCG 2021/4: the beginning of a ‘new world order’ for professional firm profits?
Addy – taxpayer successful in the ‘backpacker tax’ case
The High Court recently allowed the taxpayer’s appeal in the case of Addy v FCT [2021] HCA 34 that concerned the so-called ‘backpacker tax’.
Multiple Party Investment Trust Structures – Part 1: Federal Taxes
Sladen Snippet – TD 2021/D5 genuine disposal restrictions in employee share schemes
Legal Professional Privilege in the spotlight
Legal professional privilege (LPP) has once again become a topic of significant interest following the recent Full Federal Court decision of CUB Australia Holding Pty Ltd v FCT [2021] FCAFC 171 (CUB Decision) and the release of the draft LPP protocol from the Australian Taxation Office (ATO).
Taxpayer Alert TA 2021/2 – undeclared foreign income – ATO declares war
In 2014, the Australian Taxation Office (ATO) undertook the high-profile amnesty – Project DOIT – that allowed Australian taxpayers to voluntarily disclose (undeclared) offshore income in return for a range of ATO administrative concessions on the period-of-review, penalties, and shortfall interest.
Advanced Holdings – Full Federal Court reiterates to read the trust deed!
The Full Federal Court decision in Advanced Holdings Pty Limited as Trustee for The Demian Trust v FCT [2021] FCAFC 135 highlights important principles of trust deed interpretation and the limitations of statutory provisions concerning the evidentiary force of company records.
It also serves as a “sobering bookkeeping reminder” to directors of small companies and corporate trustees to keep good records, and as always, read the trust deed!
FCT v Ross Part 3: the onus of proof of disproving a default assessment
The Federal Court case of FCT v Ross [2021] FCA 766 concerned several aspects of taxation administrative law. This is the third article in a series on issues in FCT v Ross and discusses the onus of proof of disproving a default assessment.