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Board of Taxation releases reform options paper on corporate tax residency

The Board of Taxation is conducting a review into the current corporate tax residency rules.  After releasing a consultation paper, submissions were received.  The Board has now released a reform options paper that principally discusses two alternative options that could be used as the basis of a change to the tax law.  The Board does

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R&D Changes

The Government has introduced legislation into parliament that will make several changes to the R&D tax incentive.  The changes are aimed at “better targeting” of the incentive, enhancing its integrity and improving its administration.

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Healius Ltd vs Commissioner of Taxation

The Federal Court has decided that 505 payments to medical practitioners, ostensibly for the purchase of the medical practitioners’ practices, were tax deductible to a public company.  The amounts paid to the medical practitioners totalled nearly $44.4 million.  The true legal effect of the contract between the doctors and the taxpayer was critical to the

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When labour costs should be capitalised and not deducted

When a capital asset is acquired, constructed or created taxpayers need to consider whether any of the cost of labour that relate to the acquisition, construction or creation should be added to the cost of the asset or immediately deducted.  The ATO has released draft taxation ruling TR 2019/D6 in relation to this topic.

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Commissioner’s Remedial Power

The Tax Agents Portal is about to close.  It is being replaced by the Online Services for Agents facility.  There is an important problem with this in relation to tax agents getting access to the information of deceased clients.  In this video John Jeffreys explains the Tax Office’s workaround in relation to this issue.  It

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PCG 2019/D8

There is a problem with claiming a tax deduction for superannuation contributions made late in June and not received by the employee’s superannuation fund until July.  The contributions are not deductible until they are received by the superannuation fund.  The ATO has released a draft Practical Compliance Guideline PCG 2019/D8 in relation to this issue

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Car Parking Fringe Benefits

The ATO has released draft taxation ruling TR 2019/D5 in relation to FBT on car parking benefits.  It explains the law and has some interesting comments on what constitutes a commercial car park.

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SMSFs – Non-arm’s length income

A superannuation fund pays the top marginal tax rate on “non-arm’s length income”.  This video discusses a case recently decided in the Administrative Appeals Tribunal that concerned whether a private company dividend received by a superannuation fund was non-arm’s length income.  The case is GYBW v Commissioner of Taxation.

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