Category Archives: Tax administration

The Cancer and Bowel Research Trust case: important implications for DGRs and their trustees

Contributed by Philip de Haan (Partner) and Yat To Lee (Senior Associate), Thomsons Lawyers In Cancer and Bowel Research Association Incorporated as trustee for Cancer and Bowel Research Trust v FC of T 2013 ATC ¶10-316 (the Cancer and Bowel Research Trust case), the Administrative Appeals Tribunal (AAT) held that a deductible gift recipient (DGR)’s endorsement should be revoked on the basis that its trust deed did not comply with the legislative requirement to provide that at the first occurrence … Continue reading

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Accountants, lawyers and the privileged class: R v Special Commissioner of Income Tax (UK)

 Contributed by Philip Bisset, Partner and Antony Barrier, Lawyer, Clayton Utz   It’s likely that only those communications by and to lawyers acting in their professional capacity will be truly confidential and unavailable to the Australian Taxation Commissioner.  I enjoy my rights, but I revel in my privileges (Mason Cooley).  Legal professional privilege (LPP) is a fundamental right attaching to qualifying communications between lawyers and their clients.  The Tax Office has conceded there are good grounds for extending the privilege to communications … Continue reading

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Shifting gears for quality growth in Singapore-Rebate for business

The recent Singapore budget has highlighted the need to change policies to cater for the needs of an advanced economy. The focus will be on higher productivity through innovation. Some of the measures introduced include: Properly tax rates will be increased for high value residential properties, especially for investment properties not occupied by their owners. Vacant properties will not have properly tax refunds from 1 January 2014. A corporate income tax rebate of 30% of the tax payable (maximum SGD 30,000 … Continue reading

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Tax net in super highway

First it was Gerard Depardieu who found it too hot in France and now it is the turn of multinationals such as Google, Facebook  and Amazon. Depardieu left France complaining that the ‘super tax’ of cialis order online 75% on top earners proposed by the French Government was unacceptable. The Constitutional Court agreed with him on the grounds that taxing individuals at the rate rather than on a per household basis was unconstitutional. It is believed that the Budget Minister … Continue reading

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Business structures under threat – ATO fires warning shot

 The release by the ATO of draft Taxation Ruling TR 2012/D5 may well be the end to the wide spread practice of using of stapled securities to raise funds for business. Under such arrangements units in a public trust are “stapled” to shares in a connected company and the funds raised by the trust are lent to the company. Company pays deductible interest to the trust and the trust beneficiaries are provided trust distributions on their investments in the trust. Trust distributions, … Continue reading

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Phoenix activity and personal liability of directors

The personal liability of directors for unpaid PAYG obligations has now been extended to superannuation guarantee amounts. This increased obligation came into force on 29 June 2012. The use of putting personal liability on hold by placing viagra cheap the company into administration or by commencing winding up procedure has now been curtailed. The Commissioner need not wait until 21 days after delivering a written penalty notice to the director to commence proceedings, provided three months have elapsed after the due date … Continue reading

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Fight for counterfactuals in Part IVA cases

The recent decision by the AAT in the case of Yip v FC of T 2011 ATC 10-214; [2011] AATA 785 has created a doubt on how the courts will identify an acceptable counterfactual in Part IVA cases. In this case the Tribunal viagra price held, in relation to a two private rulings, that amounts (salary) sacrificed to an employment trust arrangement remained assessable to the employee under s 6-5(4) of ITAA 1997. The  trust funds were to be used to … Continue reading

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Tax advice privilege and uncomfortable tax positions

It all started with the collapse of Enron and WorldCom in the United States. Strict laws were enacted: first the Sarbanes –Oxley Act 2002 and then FIN 48 in 2006. FIN 48 has now been codified in FASB ASC 740-10. More recently in September 2010, the Internal Revenue Service adopted the “Uncertain Tax Positions” schedule to form part of tax returns (see Uncertain Tax Positions – Schedule UTP). In Australia, the closest in IFRS is IAS 12. Work on adopting … Continue reading

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Frankly my dear I'm confused

It was welcome when it came and now it’s got everyone hot and bothered. I am referring to the corporation law amendment that allowed dividends to be paid if the balance sheet test was satisfied, no need that dividends can only be ‘out of profits’. Section 254 T of the Corporations Act provided that no dividends may be paid unless: The company’s assets exceeded its liabilities immediately before the dividend is declared and the excess is sufficient for the payment … Continue reading

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Anti-avoidance and the economic substance Doctrine

In 2010, the Full Federal Court in Commissioner of Taxation v Gloxinia Investments Limited 2010 ATC 20-182, refused to apply the ‘economic substance’ approach in a GST dispute. The dispute related to transfer of a strata lot lease by a council and the court relied on applicable statutory provisions in the GST Act. The Tax Office argued that in characterising the transaction the court should approach the matter from a practical and business point of view and consider the ‘social … Continue reading

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