The Tax Institute was quoted in the Weekend Australian Financial Review 13-14 August 2011: “Dubious refund claims hit $190m”. The article relates to fraudulent tax returns. In the article, The Tax Institute says that the Tax Office is sending a clear message that it has sophisticated data matching and fraud detection models and is using them.
The Tax Institute was also quoted in the Australian Financial Review on Monday 15 August 2011: “Lawyers fight to keep privilege sacred”. The article relates to submissions in response to Treasury's discussion paper on the implementation of a statutory privilege for tax advice. The Tax Institute says that the protection should be narrower than the legal profession privilege; “The reality is that it’s not appropriate to say that legal professional privilege is something that should be extended to tax advisers and we’ve never suggested that would be the case”. You can access our submission here.
The Australian Financial Review also referenced The Tax Institute in its article of 19 August 2011: “Super: two strikes and you pay”, regarding the latest details on the Excess Super Contributions Tax changes announced in this year’s Budget. We warn that the reprieve is limited.
Smart Company quoted The Tax Institute on Thursday 19 August 2011: “ATO in fresh crackdown on trusts after confusing ruling on asset sale”. The article relates to the recently published TD 2011/21. The Tax Institute says that it’s not particularly unexpected and it's not the end of the world either. The Tax Office is quite rightly saying that just because an investment is being made by a trustee doesn't mean that's it's automatically on the capital account. There never has been a clear cut answer about whether stocks have been bought for capital growth or income. One positive is that the ATO is actually coming out and giving its view. To view the article, click here.
The Australian Financial Review quoted The Tax Institute on Friday 19 August 2011 on the Government's proposed trust tax law rewrite: "Trust taxation laws get close review" (page 8) and extensively quotes The Tax Institute. We say that the laws in Division 6 are so tangled that the rewrite will have to start from scratch after at least 20 years of case law where every area of the law has been litigated and is subject to uncertainty.