CGT marriage breakdown rollover does not apply to entities controlled by former spouses
In Ellison v Sandini Pty Ltd [2018] FCAFC 44, the Full Federal Court overturned decision which allowed Mr Sandini (the Taxpayer) to benefit from Capital Gains Tax (CGT) marriage breakdown rollover for the transfer of shares to an entity controlled by his former spouse, pursuant to a Family Court Order (FCO).
Sladen Snippet - What is “market value” for the purpose of the MNAV test
In Commissioner of Taxation v Miley, the Federal Court overturned decision of the Administrative Appeals Tribunal (AAT) concerning the share valuation method for the purposes of the maximum net asset value (MNAV) test in s 152-15 of the Income Tax Assessment Act 1997.
Sladen Snippet: TD 2017/20 confirms the ATO interpretation of “distributes” for the purpose of the FTDT
As previously reported in June this year, the Australian Taxation Office (ATO) published the Draft Taxation Determination TD 2017/D1 altering their previous published interpretation of the meaning of “distributes” for the purposes of the family trust distribution tax (FTDT).
The draft tax determination has now been published in its final form as TD 2017/20, confirming that FTDT can apply where there is a “distribution” to a person who is not a beneficiary of the trust.
Private companies to benefit from extension of crowd-sourced equity funding legislation
The Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 was introduced into Parliament on 14 September 2017. If passed, as is expected, the Bill will extend the reach of the Crowd-sourced Equity Funding (CSEF) legislation that will at this stage apply only to public companies from 29 September 2017.
ATO provides a “safe harbour” for fixed trusts
The Australian Taxation Office (ATO) published the final version of the Practical Compliance Guidelines (PCG) 2016/16, which provides guidance in relation to what will be considered by the Commissioner when exercising his discretion to treat an interest in the income or capital of a trust as being a fixed entitlement and by extension whether a trust is a fixed trust for the purposes of the tax law.
GST on the sale of residential property – a lesson from the Sebel Manly Beach Hotel
Sladen Snippet - New WET rebate eligibility criteria and cap reduction receives assent
As previously discussed in this forum, changes to the Wine Equalisation Tax (WET) Rebate eligibility criteria and cap reduction were announced in December 2016 by the Turnbull Government. These reforms received assent on 23 August 2017 and bring significant changes to the entitlement to the WET producer rebate.
Partner is denied access to partnership’s carried forward tax losses
Income from incidental activity is part of entity’s annual turnover and might bar CGT concessions
Sladen Snippet - Changes to the Wine Equalisation Tax (WET) Rebate eligibility criteria and cap reduction
In light of the 2016-17 Federal Budget handed down earlier this year, followed by consultation with participants in the wine industry, the Turnbull Government has announced on 02 December 2016 reforms to the WET Rebate. The purpose of these reforms, as stated by Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer is to address “distortions in the market through the misuse and exploitation of the WET Rebate scheme”.
Consolidations - ACA calculations and pre-CGT assets - High Court denies special leave in Financial Synergy Holdings case
Sladen Snippet - ATO update to the AXA Part IVA Decision Impact Statement and PS LA 2005/24
Sladen Snippet - Proposed “aggregate scheme” amendments to the debt-equity tax rules
On 10 October 2016, the Federal Government released an Exposure Draft to implement changes to the debt and equity tax rules in Division 974 of Income Tax Assessment Act 1997. The Exposure Draft is intended to effect recommendations made by the Board of Taxation in its April 2015 report Review of the Debt and Equity Tax Rules.
