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Section 99B – TD 2024/D2 – you can’t always get what you need

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Section 99B – TD 2024/D2 – you can’t always get what you need

On 31 July 2024, the ATO released draft TD 2024/D2 and draft PCG 2024/D1 on aspects of section 99B.

While we welcome the ATO guidance on section 99B, it is not what taxpayers and advisors want– section 99B requires legislative amendment. However, is the draft ATO guidance what advisor’s need?

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Sladen Snippet - Quy v FCT: residency – decision overturned on appeal

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Sladen Snippet - Quy v FCT: residency – decision overturned on appeal

We wrote about the decision of the Administrative Appeals Tribunal (Tribunal) in Quy v FCT [2024] AATA 245 here. In that decision, the Tribunal held that Mr Quy, who was physically in Australia for less than 2 months each year, was a resident of Australia for tax purposes.

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Sladen Snippet - TD 2024/5 - How NALI is calculated for capital gains

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Sladen Snippet - TD 2024/5 - How NALI is calculated for capital gains

Following the passing of changes to non-arm’s length expenditure (NALE) rules through Parliament on 25 Jun 2024, the Australian Taxation Office (ATO) has finalised its Taxation Determination TD 2024/5 (previously Draft TD 2023/D1).

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

Collective bargaining presents on its face an attractive option for franchisees. By joining forces and splitting negotiating costs, franchisees may be able to use collective power to strengthen their bargaining position and negotiate more favourable outcomes with their franchisor.

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Tao - Becoming a sole director of a corporate trustee triggers landholder duty despite no acquisition of units in a unit trust

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Tao - Becoming a sole director of a corporate trustee triggers landholder duty despite no acquisition of units in a unit trust

The VCAT decision of Tao v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 637 has confirmed the breadth of the Victorian landholder duty change of control provisions - despite no acquisition of units in a unit trust.

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Session 4: Trusts and small business CGT concessions – Oil and water or peas and carrots?

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Session 4: Trusts and small business CGT concessions – Oil and water or peas and carrots?

The small business capital gains tax (CGT) concessions (Concessions) in Division 152 of the Income Tax Assessment Act 1997 (ITAA 97) offer significant opportunities to reduce or eliminate tax levied on capital gains.1 However, despite a recent judicial pronouncement that the Concessions should be interpreted beneficially,2 the legislative conditions for relief are intricate and complex.

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Sladen Snippet - Federal Court affirms Trustees in Bankruptcy are liable for capital gains tax on property dispositions

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Sladen Snippet - Federal Court affirms Trustees in Bankruptcy are liable for capital gains tax on property dispositions

The Federal Court has confirmed that a liability to pay Capital Gains Tax applies to trustees in bankruptcy in respect of capital gains derived in their capacity as trustee.

Sladen Legal Announces Promotions of Two New Shareholder Principals and Two Principal Lawyers

Sladen Legal Announces Promotions of Two New Shareholder Principals and Two Principal Lawyers

Sladen Legal is pleased to announce the promotion of two outstanding lawyers to the position of Shareholder Principal: Edward Skilton and Neil Brydges effective 1 July 2024. This promotion recognises their exceptional legal expertise, dedication to client service, and significant contributions to the firm's success.

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Sladen Snippet – NALE changes pass parliament

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Sladen Snippet – NALE changes pass parliament

After a number of years in the making, the changes to the non-arm’s length expenses (NALE) rules have now passed through Parliament. While, as previously noted, the changes did not go far enough for many of the tax industry, and accounting bodies, the changes offer some relief to taxpayers.

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Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

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Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

On 24 May 2024 the New South Wales Supreme Court held that landholder duty applied to value of a water carrying pipeline in Conexa Sydney Holdings Pty Ltd v Chief Commissioner of State Revenue (2024] NSWSC 628.

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Details Needed To Pursue Insolvent Trading Claims - Copeland as Liquidator of Skyworkers Pty Ltd (In Liq)) v Murace

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Details Needed To Pursue Insolvent Trading Claims - Copeland as Liquidator of Skyworkers Pty Ltd (In Liq)) v Murace

On 18 January 2023 the Federal Court of Australia handed down its decision in Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14. The decision resulted in Liquidator’s insolvent trading claim against Mr Murace being struck out and costs awarded to the defendant, although the liquidator was then allowed to file a further statement of claim.

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Determining Insolvency and Unreasonable Director Related Transactions: Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq)

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Determining Insolvency and Unreasonable Director Related Transactions: Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq)

Guidance has been provided to liquidators by the Federal Court of Australia in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) regarding the analysis of financial records required to determine the solvency of a company and what conduct of a director will constitute an unreasonable director related transaction.

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Proving Insolvency: Re Clarinda Pty Ltd (in liq)

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Proving Insolvency: Re Clarinda Pty Ltd (in liq)

In Re Clarinda (liq) [2023] VSC 109, parties sought the leave of the Court to use documents produced in an earlier proceeding to demonstrate the insolvency of the company. Justice Connock ultimately allowed the documents to be reproduced on the basis that the issues in dispute are the same, or substantially the same, and set out the special circumstances which substantiate this reproduction.

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New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

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New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

The New South Wales State Budget 2024-25 is a mixed bag, containing an increase to foreign surcharges, but also payroll tax relief for GP contractors. The tax-free threshold for land tax will also remain the same, so more landowners will be subject to land tax as property values rise.

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Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

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Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.