Taxation in Australia

Articles from the current issue:

• Tax News – At a glance: November – What happened in tax?

  shopping_cart Add to cart 01 Dec 2019

  The following points highlight important federal tax developments that occurred during November 2019. 

• Residence tests for individuals: Impact of the Harding decision

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  The High Court has refused the ATO special leave to appeal from the Full Federal Court decision in FCT v Harding. This case has particular importance for individual taxpayers attempting to determine whether they are Australian residents or non-residents for income tax purposes. The two tests directly affected by the Harding case are the domicile test and the 183-day test as per s 6(1) of the Income Tax Assessment Act 1936. This article analyses the Full Federal Court decision in Harding and provides an insight as to how the two tests should be applied according to law. In so doing, the article dissects IT 2650 and TR 98/17, and suggestions are made that those rulings need to be withdrawn or substantially revised.

• A matter of trusts: TD 2019/D6 and TD 2019/D7: (Further) unintended consequences?

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  While consistent with recent ATO views, TD 2019/D6 and TD 2019/D7 provide minimal clarification on the taxation of Australian
  discretionary trusts distributing capital gains to foreign beneficiaries.

• Tax Counsel's report: Trade-offs and the federal Budget

  file_download Free to download 01 Dec 2019

  The Tax Institute’s recent federal Budget 2020-21 submission discusses the need to look at trade-offs that can be made to ensure a strong tax system.

• Tax tips: Vacant land deductions

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  During its passage through parliament, changes were made to the amendments that in certain circumstances operate to deny deductions that relate to the holding of vacant land.

• Superannuation: NALI warning: LCR 2019/D3

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  LCR 2019/D3 contains a very draconian application of the newly amended non-arm’s length income and expenditure provisions for self-managed superannuation funds.

• CEO's report: Another eventful year at The Tax Institute

  file_download Free to download 01 Dec 2019

  CEO Giles Hurst reflects on a busy year, just ahead of the festive season.

• Mid market focus: Testamentary trusts: Reforms at a trickle

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  With the taxation of testamentary trusts under increased scrutiny, this article provides a timely reminder when planning for the use of testamentary trusts.

• Deceased estates, real property and real issues

  shopping_cart Add to cart 01 Dec 2019

  Notwithstanding that death is generally not a taxing event, there are a number of complex legal and tax issues which need to be considered, particularly in relation to real property. An executor who sells real property will need to understand how the capital gains tax cost base and main residence rules apply. It is also relevant to beneficiaries who inherit property. Further, the manner in hich an interest in property is passed to a beneficiary (for example, directly or via a testamentary trust or life interest) will affect the tax treatment of that interest. Finally, estate administration is rarely straightforward, and if a dispute or other complication arises over the distribution of assets, the parties may wish to resolve the issue by entering into a deed of family arrangement. This has its own set of tax risks and considerations.

• Alternative assets insights: Glencore v FCT: Transfer pricing decision

  shopping_cart Add to cart 01 Dec 2019

  The Glencore case is expected to have a significant impact on a broad range of outstanding transfer pricing disputes.

• Tax education: Take the road to success with The Tax Institute

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  With the CTA designation on the horizon, The Tax Institute’s 2019 SP2 successful duces are sharing their learning experience.

• Tax cases: Is it a capital or an income expense?

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  In Sharpcan, the High Court has considered longstanding principles relating to whether an outgoing was on revenue or capital account.

• Reliability of evidence in tax disputes

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  Taxpayers and their advisers face constant crossroads in disputes with the ATO. These crossroads include, inter alia, the making of
  ongoing assessment of the probative value of contemporaneous documentation in support of the client taxpayer’s position. The recent cases of Mingos v FCT and SDRQ and FCT serve as a timely reminder of the importance of having access to contemporaneous records to support factual propositions in tax positions being adopted. Taxpayers and their advisers should prudently make value judgements regarding the probative value of documentary evidence held in support of the taxpayer’s position with the contextualisation of the documents against the uncontroversial facts of the dispute.

• Member profile: Kyriacos Savvas

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  This month’s column features Kyriacos Savvas, CTA, from Kostkas Accountants and Advisors, Northern Territory.

• President’s report: Not goodbye, but reflection and thanks

  file_download Free to download 01 Dec 2019

  President Tim Neilson pens his last report as president of The Tax Institute.