ATO

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

Tax Office amnesty for disclosing offshore assets

The ATO has launched “Project DO IT: disclose offshore income today” in a bid to urge taxpayers with offshore assets to declare their interest ahead of a global crackdown on international tax havens. The ATO said its offshore voluntary disclosure initiative (OVDI) provides a last chance opportunity for those who haven’t declared their overseas assets ...more

inTAX February 2014

Tax & audit advice; CGT-foreign residents; trust reimbursement agreements; GST-second-hand goods

The February 2014 edition of Thomson Reuters inTAX magazine features the following tax-related articles: Is giving tax and audit advice to the same client under threat? – According to Terry Hayes, Senior Tax Writer, Thomson Reuters, a recent development in Europe concerning the reform of the auditing sector should not be ignored. It also has ...more