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22nd National Convention: Tackling Tax

Published on 14 Mar 2007 | Took place at Hotel Grand Chancellor, Hobart, National

These materials cater for practitioners whether they operate in the SME sector or the “big end of town”. Whether in house or advisory, an administrator or policy maker.

Get a 20% discount when you buy all the items from this event.

Individual sessions

Current hot topics in GST

Author(s):  Gina LAZANAS

This paper covers:

  • GST and failed supplies - practical problems with forfeited deposits and cancellation fees
  • the aftermath of the Marana changes and the Toyama case - ongoing property transaction issues
  • topical GST cases and rulings - what are the controversies?
Materials from this session:

Tax consolidation update

Author(s):  Andrew WOOLLARD

The paper provides a progress report and update on recent developments in tax consolidations for large corporates. It includes an update on:

  • recent legislative amendments
  • ATO review activity
  • ATO rulings/determinations
  • outstanding technical issues.
Materials from this session:

Playing the tax theremin: private groups and demerger and scrip for scrip tax relief

Author(s):  Paul SOKOLOWSKI,  Shaun CARTOON

This paper covers:

  • when should a private company be concerned about section 45B?
  • rulings experiences with demergers and scrip for scrip transactions
  • what are some of the traps and issues that bite when participant in demergers and scrip-for-scrip arrangements?
  • anti-avoidance issues with using multiple roll-overs and exemptions together.
Materials from this session:

Division 7A and loans - traps and tips

Author(s):  Peter RILEY

This paper covers:

  • the basics revisited
  • loans within groups of entities
  • payments made by companies and trusts
  • provision of property held by companies and trusts
  • loans - statue barred, Section 108 and forgiveness
  • the key points in recent submissions to Treasury and the ATO
  • the less obvious trap(s).
Materials from this session:

CGT small business changes from the budget

Author(s):  Chris EVANS

This paper covers:

  • changes to the conditions for accessing the CGT small business concessions, including:
    • the maximum net asset value test
    • the active asset test
  • the controlling individual/significant individual changes
  • changes to the way the concessions apply to partnerships
  • changes to the concessions including:
    • the 15 year exemption
    • the retirement exemption
    • the small business roll-over
    • planning points for the new regime.
Materials from this session:

Working with the tax profession

Author(s):  Michael D'ASCENZO Given the vital role played by the tax profession in influencing levels of voluntary compliance and in facilitating efficient transactions with the Tax Office, it is essential that the tax profession is capable and well regulated. This can best be achieved through an effective commitment between the Tax Office, tax professionals and the Tax Agents’ Boards. I see it as a true tripartite arrangement, where each party complements the others.

Materials from this session:

New CGT exposures and exemptions for non-residents

Author(s):  Ken SPENCE,  Richard SHADDICK

The Government has introduced new provisions to first narrow the focus of CGT for non-residents to Australian real property and permanent establishment assets and secondly introduce a rigorous “land rich” type mechanism that looks through interposed entities. This paper considers:

  • which taxpayers will benefit?
  • how this particular “land-rich” tracing mechanism operates
  • structuring implications
  • tax treaty interactions, i.e. whether Australia has the right to impose this new tax impost
  • assets held through trusts.
This paper was also presented on 3 August 2007 by Ken Spence at the Queensland State Convention in Surfers Paradise.
Materials from this session:

Are you ready for the superannuation revolution?

Author(s):  Paul BANISTER

This paper covers:

  • use of contribution caps
  • planning for tax-free benefits
  • pension changes
  • life without RBLs
  • super for life
  • new strategies for business owners, investors and expatriates.
This paper was also presented at the Estate Planning Intensive held in Brisbane on 24 May 2007.
Materials from this session:

Justice Graham Hill and Australian tax law

Author(s):  Michael KIRBY This paper pays tribute to Graham Hill's contribution to the law of taxation and to the whole of the law, to lawyers and to Australian society.

Materials from this session:

The use of special purpose trusts in estate planning

Author(s):  Matthew BURGESS

In light of fundamental changes to the taxation regime and the expanding wealth of Australia’s aging population, there is a growing need for estate planning to utilise appropriate structuring. This article focuses on the use of special purpose trusts in the estate planning process.

The second part of this article appears in the June 2007 edition of Taxation in Australia.

The paper in its entirety was originally presented on 16 March 2007 at the 22nd National Convention held in Hobart. It was subsequently presented on 3 August 2007 at the Queensland State Convention held in Surfers Paradise.

Materials from this session:

Selected aspects of source and residency in the new millennium

Author(s):  Dr Michael DIRKIS

This paper covers:

  • overview of the findings of Ralph and RITA on residency and source
  • review of selected difficult areas of the corporate residency rules, in particular a look at TR 2004/15
  • review of the difficulties in establishing source, including impact of the repeal of statutory source rules, e-commerce and DTAs.
Materials from this session:

Trusts and capital gains tax

Author(s):  Glen BARTON

This paper covers:

  • streaming capital gains to beneficiaries?
  • implications of PS LA 2005/1 (GA)
  • can capital gains ever be income?
  • accessing small business CGT concessions post 1 July 2007
  • capital gains and unit trusts
  • capital gains and deceased estates.
Materials from this session:

Getting money out of companies

Author(s):  Michael HINE

This paper explores the tax issues that arise when winding up a private company and covers income tax, GST and stamp duty aspects including:

  • why liquidate? - comparison with capital return mechanisms
  • dividend v capital proceeds - where do I start?
  • managing available franking credits
  • CGT events C2 and G1
  • implications of various liquidation strategies
  • interaction with CGT discount and small business concessions
  • liquidating consolidated entities - where should you start?
Materials from this session:

Advising a client who is acquiring a company from a tax consolidated group

Author(s):  Alistair Hutson

Focused on SME advisers, this paper covers practical issues when a client acquires a company that has been part of a consolidated group including:

  • structuring for the acquisition
  • what tax history will it inherit?
  • asset identification and valuation
  • buying the company versus buying the assets
  • tax sharing agreements and tax indemnities
  • issues relevant to the vendor’s negotiating position.
Materials from this session:

Some implications of the McDermott case for the ATO

Author(s):  Roger HAMILTON The Commissioner’s loss on appeal to the Full Federal Court in McDermott Industries (Aust) Pty Ltd v. FC of T 2005 ATC 4398; (special leave to appeal to the High Court was refused, [2005] HCA Transcripts 1043) gives rise to a raft of interpretational problems for the ATO. This paper discusses a few of the more obvious of those problems.

Materials from this session:

McDermott industries

Author(s):  John W DE WIJN In the McDermott Industries case the Full Federal Court held that a company, Chartering Company Singapore Pty Ltd, a resident of Singapore, was deemed under Article 4(3)(b) of the Singapore/Australia Double Tax Agreement to have a permanent establishment in Australia and to carry on business through that permanent establishment by virtue of it having chartered barges to McDermott Industries (Aust) Pty Ltd for use by it in its business of marine construction. This decision highlights a number of issues for taxpayers.

Materials from this session:

Practical guide to family trust elections and trust losses

Author(s):  Paul TANTI

This paper covers:

  • when is a trust a fixed trust?
  • how the Commissioner’s discretion on fixed trusts works?
  • when are FTEs and IEEs needed and when are they not needed?
  • is the ATO correct that a FTE is needed when a trust is cloned?
  • is injecting income a perilous exercise?
  • how do the ROSA amendments impact on trust losses?
Materials from this session:

Practical approach to preparing transfer pricing documentation

Author(s):  Chris BOWMAN

This paper covers:

  • why prepare documentation? Risk mitigation and strategic planning
  • how to approach the process of writing it all down
    • build on and support schedule 25A related party disclosure
    • know the business and industry and know what data base will support the chosen method
    • use the available database knowledge to benchmark under the method selected and come to a conclusion
    • can overseas databases be used? What the ATO uses
  • what do you do if the result doesn’t support the outcome - is it arm’s length?
Materials from this session:

McNeil and Transurban City Link

Author(s):  David BLOOM

This paper covers:

  • facts of each decision
  • decision of Full Federal Court
  • decision of High Court
  • application to other situations.
Materials from this session:

Tax issues with legal costs

Author(s):  Richard NORTON

This paper covers:

  • deductibility under section 8-1 and specific provisions - capital or revenue
  • impact of the new “blackhole” expenditure rules
  • inclusion of legal costs in the CGT cost base - ATO ID 2006/179
  • recent cases.
Materials from this session:

Liability of tax advisors

Author(s):  Gino DAL PONT

This paper covers:

  • law of negligence and its impact upon tax practitioners in their professional practices
  • common law duties of competence
  • impact of trade practices and fair trading legislation
  • fiduciary duties and responsibilities of tax advisors
  • professional sanctions for practitioners who engage in tax evasion (either personally or in an advisor-client relationship).
Materials from this session:

Taxation of financial arrangements implications for SMEs

Author(s):  Neil WARD

The TOFA rules will have significant implications for many SMEs. Issues discussed in this paper include:

  • the scope of the legislation - how wide is the definition of “financial arrangement” and what taxpayers will be impacted?
  • a practical application of the proposed rules
  • update on issues such as:
    • FX denominated bank accounts
    • short term foreign exchange gains/losses
    • at call loans
  • the continuing interaction of pre TOFA rules, existing TOFA rules and the proposed rules.
This was also presented by Fiona Cahill at the 'TOFA - Implications for SMEs' seminar held in Perth on 22 May 2007.
Materials from this session:

Employee share and option plans

Author(s):  Vanessa PRIEST

This paper reviews recent tax issues about providing employee incentives including:

  • the amendments to Division 13A
  • the decision in Isaacs v FCT and the importance of carefully considering the elections available
  • considering the recent cases dealing with employee benefit trusts. When do they work?
  • considering the taxation implications of participating in an employee share or option plan while either a non-resident or working overseas.
Materials from this session:

Stamp duty and GST issues arising from disposal of property and creation of rights

Author(s):  Peter GREEN

This presentation covers:

  • areas of divergence, interaction and correspondence between stamp duty and GST
  • a “business tax” - approach to analysis and characterisation
  • identification of consideration post Dick Smith
  • consequences of statutory and contractual adjustments to purchase price
  • is goodwill required for the GST-free supply of a going concern
  • transfers of property and payments by direction including transfers involving trustees/custodians
  • does consideration relate to the creation or exercise of rights?
Materials from this session:

Taxation of financial arrangements - second exposure draft bill - an overview

Author(s):  David ROMANS

This paper provides a review of current issues in TOFA that are relevant for large corporates, including:

  • which taxpayers do the rules apply to?
  • which transactions do the rules apply to?
  • accruals, realisation and hedging basis
  • linkage to accounting standards
  • transitional implementation.
Materials from this session:

Service trusts

Author(s):  Peter MURRAY

This paper covers:

  • is the Commissioner’s ruling correct at law?
  • how have the transition rules been applied in practice?
  • practical experiences with the Guide Book
  • asset protection features
  • is restructuring the practice the preferred option?
Materials from this session: