Sladen Snippet – Superannuation announcements in the 2021 Federal budget
Onus of proof: asset betterment case sent back to the AAT
Part IVC of the Taxation Administration Act 1953 gives taxpayers statutory avenues to argue, in the Administrative Appeals Tribunal (AAT) or Federal Court, that the substantive liability imposed by an assessment is excessive through a review or appeal of an objection decision. Where an assessment is found to be excessive, the Commissioner must amend the assessment.
Sladen Snippet – Addy – Backpacker Tax case goes to High Court
We have previously discussed the Full Federal Court decision in Addy v FCT [2020] FCAFC 135 here. In this case, the court held that Ms Addy, a working holiday maker, was not entitled to benefit from the tax-free threshold as she was not an Australian tax resident. The so-called ‘backpacker tax’.
AAT confirms non-compliance of accountant’s SMSF but reverses trustee disqualification
Sladen snippet - super contribution caps and transfer balance cap to increase from 1 July 2021
Sladen snippet - ATO extends transitional compliance approach to NALE for another financial year
As previously discussed here, the definition of non-arm’s length income (NALI) under the Income Tax Assessment Act 1997 was amended in mid-2018 to include non-arm’s length expenses or NALE. NALE includes not just an expenditure, but also a loss or outgoing that is lower than an arm’s length amount, and also includes where there is a nil amount (ie, no expenditure).
Sladen Snippet - COVID relief measures: ATO confirms how LRBA relief interacts with Division 7A
As discussed here, as part of the ATO COVID-19 administrative concessions, the ATO announced that temporary repayment relief could be offered for limited recourse borrowing arrangements (LRBA) loans. The repayment relief must reflect similar terms to what commercial banks offered for real estate investments loans as a result of COVID-19.
TR 2021/D2 – new ATO guidance on the PSI rules including the application of Part IVA
On 11 March 2021, the Australian Taxation Office (ATO) released Draft Taxation Ruling TR 2021/D2 on the operation of personal services income (PSI) rules and the personal services business (PSB) tests.
Sladen Snippet - Khan: self-education expenses not deductible
Sladen Snippet - NSW Supreme Court holds manager of protected estate cannot make BDBN on behalf of protected person
Sladen Snippet – Small business CGT Concessions: Is your business primarily deriving rent?
The Australian Taxation Office (ATO) has issued Taxation Determination TD 2021/2 that contains the ATO view that companies which carry on a business will be unable to benefit from the small business capital gains tax (CGT) concessions if the relevant asset is mainly used to derive rent (TD 2021/2 was issued as Draft TD 2019/D4 that we discussed here).
ATO’s Next 5,000 Audit Program – Our Top 5 Tips for how you can be ready
Bitcoin's back - but the ATO never left
With news and social media feeds being filled with tales of cryptocurrency (in particular bitcoin) prices fluctuating many taxpayers are making, or considering making, investments. However before jumping in taxpayers should understand that the anonymity that was originally touted as the shining crown of cryptocurrencies is not the invisibility cloak many may think it to be. What does the ATO really know about your cryptocurrency holdings and what do you need to disclose?
Sladen Snippet – do intermediary LRBAs count for the total super balance add back provisions?
An intermediary limited recourse borrowing arrangement (LRBA) differs from a standard LRBA in that the bare trustee, rather than the SMSF trustee, enters into an LRBA borrowing as principal with a lender.
Sladen snippet – default interest subject to duty
Land transfer duty is calculated on the dutiable value of the property. In Commissioner of State Revenue (Vic) v 1043 Melton Highway Pty Ltd [2020] VSC 820, the Supreme Court considered default interest is included in ‘consideration’ for the transfer of dutiable property.
Sladen snippet – High Court refuses leave to appeal finding that dentist is covered by super guarantee
As discussed here, the decision in Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 (16 June 2020) (Moffet) marked an important shift in how the courts have interpreted the employee/contractor distinction for the purposes of superannuation guarantee obligations.
Sladen snippet – share trading course not deductible for SMSF
The ATO has released a private binding ruling (Ruling) on the deductibility of certain expenses incurred by a self managed superannuation fund (SMSF) trustee in managing the SMSF’s share portfolio.
