ATO

Bitcoin tax treatment; CGT small business roll-over; superannuation contribution mistakes; employee share schemes

Bitcoin tax treatment; CGT small business roll-over; superannuation contribution mistakes; employee share schemes

The September 2014 edition of Thomson Reuters inTAX magazine features the following articles: ATO decision disappointing for Bitcoin in Australia – Unfortunately, and despite other interpretations existing, the ATO has confirmed that it does not consider Bitcoin to be money or a foreign currency, and will treat Bitcoin transactions as barter transactions. Reuben Bramanathan, Senior ...more

FBT and executives; affiliates and the CGT small business tax concessions; stamp duty; payroll tax grouping

FBT and executives; affiliates and the CGT small business tax concessions; stamp duty; payroll tax grouping

The August 2014 edition of Thomson Reuters inTAX magazine features the following articles: Managing FBT on executives’ benefits is often misunderstood – Paul Mather, Director of FBT, Payroll & Salary Packaging Solutions, reflects on a number of particular FBT issues and opportunities as they pertain to executives, expatriates and other employees. An affiliate cannot be ...more

CGT concessions and timing; ATO draft TR 2004/D25; Pt IVA anti-avoidance rule; insurance proceeds

CGT concessions and timing; ATO draft TR 2004/D25; Pt IVA anti-avoidance rule; insurance proceeds

The July 2014 edition of Thomson Reuters inTAX magazine features the following articles: CGT concessions – it’s all in the timing – It is often vital to determine how long a CGT asset has been “held” or “owned” for determining if any capital gain made on the asset qualifies for any of the relevant CGT ...more

SMSF auditor contravention reports: ATO’s new compliance approach

The Tax Office has announced that it will apply a new risk-based approach to treat auditor contravention reports (ACRs) based upon the overall risk posed by the self-managed superannuation fund (SMSF). Under this new approach, the Commissioner will consider multiple indicators and use new risk models to determine the appropriate action to take on each ...more

Superannuation re-contribution hit with $60,959 in excess contributions tax

The AAT has upheld a superannuation excess contributions tax assessment after finding that there were no “special circumstances” to enable the Commissioner to disregard the excess non-concessional contributions. As reported in Thomson Reuters Weekly Tax Bulletin (Issue 23, 30 May 2014), the taxpayer had made a personal superannuation contribution of $400,000 in the 2008-09 year. ...more

SMSF borrowings: zero interest LRBA generates 45% tax: ATO private ruling

The Tax Office has issued a private binding ruling stating that a superannuation fund will derive non-arm’s length income under s 295-550 of the ITAA 1997 (taxable at 45%) where it enters into a related-party limited recourse borrowing arrangement (LRBA) with a 0% interest rate. As reported in Thomson Reuters Weekly Tax Bulletin (Issue 16, ...more

SMSF borrowings: ATO extends in-house asset exemption

The Tax Office has registered a Determination to extend the in-house asset exemption for self-managed superannuation fund investments in a related trust as part of a limited recourse borrowing arrangement (LRBA). Broadly, the ATO Determination seeks to ensure that such arrangements are excluded from being an in-house asset of the SMSF: at the beginning of ...more

Fishing crew members not “employees” as engaged in joint venture

The Administrative Appeals Tribunal has held that fishing crew members on a commercial fishing vessel were not “employees” at common law or under the extended meaning of that term in s 12(3) of the Superannuation Guarantee (Administration) Act 1992 (SGAA). As such, the taxpayer company was not required to make superannuation contributions in respect of ...more

Segregation of superannuation fund bank accounts: ATO revises position

The Tax Office has issued a Determination setting out the circumstances in which a bank account of a complying superannuation fund is a “segregated current pension asset” under s 295-385 of the ITAA 1997. The application of this definition to a bank account is a key requirement for a self-managed superannuation fund (SMSF) to qualify ...more

Excess superannuation contributions tax: ATO wins test case

Taxpayers who inadvertently exceed their superannuation contributions caps have been dealt another blow after the Tax Office successfully appealed an AAT decision which had granted discretionary relief to a taxpayer with excess contributions. As reported in Thomson Reuters Weekly Tax Bulletin Issue 12 (21 March 2014), the Federal Court set aside the AAT’s decision after ...more