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1. Launch of the Tax Issues Entry System
The Assistant Treasurer, the Hon Chris Bowen MP, has announced the launch of the Tax Issues Entry System (TIES) in a press release issued by him on 20 November. Mr Bowen said that TIES is a single entry point for tax professionals and the community to raise minor policy and administrative issues relating to the care and maintenance of the tax and superannuation systems.
With the launch of TIES, the Government is delivering on one of the recommendations from the Tax Design Review Panel’s report, Better Tax Design and Implementation which was released on 22 August 2008. The Institute lodged a submission to the Panel on 20 March, as reported in Edition 32/2008 of the Tax Bulletin. One of our submission points was that the Board of Taxation’s recommendation of TIES be adopted and we were pleased to see that it was taken up by the Panel’s report.
The Board of Taxation will review the operation of TIES after 12 months. Further information on TIES is available on its website.
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2. Responses to the Joint Committee of Public Accounts and Audit’s report
The ATO and the Government have separately released their responses to the Report on Tax Administration (Report 410) by the Joint Committee of Public Accounts and Audit (JCPAA). As reported in Edition 24/2008 of the Tax Bulletin, the JCPAA tabled Report 410 in the Federal Parliament on 26 June.
In its response, the ATO supported eight recommendations with no qualification, supported two with qualifications and supported one recommendation in principle. Issues involved included service standards for private ruling requests, resolving issues contained in judicial decisions, periods of grace and protocols for determining an audit.
The Government provided a response to seven recommendations which involve a cross-section of issues, ranging from phoenix arrangements to improvement of Government consultation.
Copy of the ATO’s response to Report 410 is here and the Government’s response is here.
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3. Institute appoints new Tax Counsel and General Manager, Standards & Public Affairs
The Institute has announced the appointment of its new Tax Counsel, Yasser El-Ansary, as successor to Ali Noroozi. Yasser comes to the Institute with an ideal background for the Tax Counsel role with over 14 years experience in business and taxation advisory roles across government, practice and commerce. He is currently Group Tax Manager for Australand Holdings Ltd, and has also held positions at PricewaterhouseCoopers, the Federal Department of the Treasury and Rio Tinto. Yasser’s experience in influencing government tax policy principles and delivering legislative changes will serve him well in the Institute’s priority areas of reducing red tape and developing and influencing good tax policy debate in Australia. Yasser will commence with the Institute on 12 January 2009.
Lee White will succeed Bill Palmer, FCA, as the General Manager, Standards & Public Affairs. Bill will move to a strategic role growing the Institute’s activities in Asia, on a part-time basis. Lee is currently Chief Accountant for the Australian Securities and Investments Commission (ASIC), and his breadth of expertise will equip him perfectly to build upon the Institute’s leadership and member support work in the key areas of Financial Planning & Superannuation, Tax, Reporting, and Auditing & Assurance. He will also manage the Institute’s Government Affairs, Professional Conduct, Professional Standards and Quality Review functions.
The Institute congratulates each of the appointees on their respective new roles and looks forward to their involvement in the continued success of the Institute, as we maintain our focus on contributing to the health of the accounting profession and of the Australian economy.
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4. New Inspector-General of Taxation holds co-consultation meeting
On 19 November, Donna Bagnall represented the Institute at a meeting held by the new Inspector-General of Taxation (IGOT), Ali Noroozi, with representatives from peak organisations to discuss the IGOTs future work program.
The main focus of the meeting was to provide a brief update on current reviews and to discuss the proposed process for determining the future work program. Essentially, this will be a broad consultation process, including a public call for submissions on review topics. Priority review topics will be those targeting areas that would bring the greatest improvement to tax administration (simpler, more transparent, more efficient or fairer) to the broadest range of taxpayers.
The IGOT has encouraged the professional bodies to submit a list of the issues that they consider should be on the work program, and has called for submissions by the end of January 2009. If members would like to suggest one or more review topics, could you please send them to Tax Group by 21 January 2009. Members should include a brief paragraph outlining the issues of concern, the estimated number and type of taxpayers affected and the potential improvements.
When considering your suggested review topics, please ensure that they fall within the scope of the IGOT review powers, namely, to review systemic tax administration issues. Such issues may arise from the conduct of the ATO or the underlying tax laws dealing with administrative matters. For example, the policies or processes for assessing, collecting, paying or recovering amounts under a tax law, or the enforcement of a tax law. The IGOT cannot review tax policy nor deal with one-off taxpayer disputes.
The IGOT expects to announce the new work program in March next year, however intends to hold a further meeting with key stakeholders before this time to discuss and prioritise the review topics that emerge from the consultation process.
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5. NTLG Losses & CGT Subcommittee meeting
On 19 November, Susan Cantamessa and Tony Stolarek (Ernst & Young) represented the Institute at a meeting of the NTLG Losses & CGT Subcommittee. Matters discussed included:
- The proposed establishment of a working group to progress issues and co-design products dealing with CGT issues for non-residents and, in particular, issues arising from Division 855 which was introduced in December 2006. In this regard, the ATO's recently released Tax Alerts, TA 2008/19 and TA 2008/20, were discussed.
- A number of issues relating to the small business CGT concessions.
- The application of the cost base rules for an entity acquiring scrip from a significant or common stakeholder in exchange for scrip and other consideration.
Further details of the matters discussed at the meeting are set out in the agenda for the meeting. Minutes of the meeting will be published in due course and a link provided in the Tax Bulletin. In the meantime, if you would like more information on any of the matters discussed at the meeting, please email the Tax Group.
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6. Management fees for Budplans derived when fees fell due under participants’ contracts - Business & Research Management Pty Ltd v Commissioner of Taxation [2008] FCA 1652
The Federal Court (Edmonds J) has dismissed the application by Business and Research Management Limited (in liquidation) (‘BARM’), finding that subject to Arthur Murray, the full amount of management fee income was derived when the fees fell due for payment by the participants under their contracts.
BARM was the manager of nine projects, collectively known as the ‘Budplans’ that established syndicates for the purpose of commercialising products from research and development. The arrangements involved a series of ‘round robin’ transactions, with BARM making a deposit with a related company, Project & General Finance Pty Limited (‘PGF’) equal to the face amount of each bill delivered to it by PGF for payment of the management fees. BARM sought to argue that only an amount equal to the total of the amounts to which PGF had recourse under the loans made by it to the participants in the Budplans was derived/assessable.
The Court found that the delivery of the bill of exchange to BARM was the equivalent of a receipt of money and that there was nothing further that BARM had to do to earn the management fee. This was also consistent with BARM being an accruals basis taxpayer (as the Court rejected the taxpayer’s contentions that a cash basis may apply). The Court also noted that if the amount payable related to the provision of services in a later year, the Arthur Murray principle would apply to delay derivation to the year of income in which those services were provided.
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7. Companies not scientific institutions - Australian Tea Tree Oil Research Institute Ltd (in liq) v Commissioner of Taxation [2008] FCA 1653
In a case heard directly after the above, the Federal Court (Edmonds J) has held that two companies undertaking scientific research were not ‘scientific institutions’ and therefore not exempt from income tax under applicable legislation, being s 23(e) of the ,i>Income Tax Assessment Act 1936 and ss 50-1 and 50-5 (Items 1.1, 1.3 or 1.4) of the Income Tax Assessment Act 1997.
In the relevant years, one or both of the companies were paid research fees by BARM.
The Court generally accepted the Commissioner’s submissions, finding that both companies were formed to undertake the contractual obligations set out in the Budplan prospectus documents and to meet the objectives of a broader commercial endeavour. The companies’ activities were “directed predominantly, if not solely, to that commercial endeavour” and “were not concerned with benefiting the public or advancing science as ends in themselves; no one was intended to benefit from the research but BARM and the Participants”.
In finding that the companies were not exempt, it followed from the decision in BARM (above) that for the same reasons, the full amount of research fee income was derived when the fee fell due for payment (subject to Arthur Murray).
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8. No deduction for exploration and prospecting scheme management fees and interest - Narbey v Commissioner of Taxation [2008] FCA 1699
The applicants were investors in the Base Metals Exploration and Prospecting Project (the Project). In either the 1998 or 1999 year of income, they claimed deductions in relation to management fees and interest on a loan (entered into for the purpose of financing the applicants payment of the management fees) on the basis that the amounts were deductible under s 8-1 of the ITAA 1997 and/or were deductible under s 330-15 of the ITAA 1997 as they were incurred on exploration or prospecting for minerals or quarry materials.
The Tribunal had accepted the Commissioner’s submissions and disallowed the deductions. However, the applicants’ claimed that the Tribunal did not indicate why it had accepted the Commissioner’s submissions and it had not addressed some of the key issues necessary in order to determine various aspects of the submissions.
The Federal Court (McKerracher J) concluded, ‘[i]n short, while the Tribunal did not set out expressly its considerations of each and every argument raised by the applicants, it seems to me that acceptance of the submissions of the Commissioner necessarily meant that those arguments of the applicants were rejected’.
However, the court did accept the applicants’ argument that within the context of the imposition of a penalty, the Tribunal erred in law in failing to make the critical material finding as to the applicants’ subjective or actual purpose, following the decision in Starr v Commissioner of Taxation of the Commonwealth of Australia (2007) 65 ATR 86.
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9. Onus on taxpayer to rebut reconstructed supplies and payments used for GST and withholding penalty assessments – Hua-Aus Pty Ltd v Commissioner of Taxation [2008] AATA 1033
The Tribunal has affirmed the objection decision of the Commissioner in relation to a GST net amount assessment and a penalty assessment for failing to withhold tax from payments to suppliers who did not quote an Australian Business Number (ABN).
The taxpayer, Hua-Aus Pty Ltd, conducted an escort services enterprise. The assessments arose out of an audit of the taxpayer’s Business Activity Statement (BAS) for the December 2004 quarter. The Commissioner’s assessment increased the taxpayer’s GST net amount by $32,350, reflecting unreported taxable supplies of $351,349. These supplies were reconstructed and imputed from un-sourced deposits into bank accounts and credit card accounts operated by the taxpayer and Mr Hua, the sole director of the company. Input tax credits were also decreased for lack of tax invoices. The Commissioner also imposed a penalty of approximately $25,000 for failure to withhold tax from payments.
The taxpayer lodged an objection to both the GST assessment and the withholding penalty assessment. After considering the objection, the Commissioner made a minor reduction to the GST assessment, but disallowed the penalty objection in full. The taxpayer applied to the Tribunal for review of the objection decision.
The Tribunal agreed with the Commissioner on both the GST assessment and the ‘No ABN withholding’ aspects of the objection decision (the Commissioner had made further small reductions to amounts at the review). In affirming the decision, the Tribunal held that the burden lies with the taxpayer under section 14ZZK of the Taxation Administration Act 1953 to prove that the assessment is excessive, incorrect or should be made differently. In this case, the taxpayer did not discharge the burden as no satisfactory explanation or documentation was provided to otherwise explain the source of the cash deposits.
Regarding the ‘No ABN withholding’ requirement, the Tribunal concluded that the escorts were in the position of contractors to the taxpayer, not partners, such that withholding applied. The Tribunal also accepted the Commissioner’s decision to impose a withholding penalty which remitted 50% of the applicable penalty, on the basis that the taxpayer’s conduct was reckless but less than the worst tax failure deserving the maximum penalty, as per PS LA 2003/11.
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10. Appeals update
The High Court has refused the taxpayer special leave to appeal against the decision of the Full Federal Court in Lenzo v Commissioner of Taxation [2008] FCAFC 50. This case involved a scheme for investment in a sandalwood plantation in which Part IVA of the ITAA 1936 was held to apply, as reported in Edition 14/2008 of the Tax Bulletin. The High Court transcript is here.
The Commissioner has appealed to the Full Federal Court against the decision in Romanin v The Commissioner of Taxation [2008] FCA 1532. In that case, the Federal Court (McKerracher J) held that legal expenses incurred by the taxpayer were deductible under s 8-1 of the ITAA 1997. The expenses were in respect of proceedings instituted to recover income that was contractually due to Mr Romanin following the sudden termination of his employment, as reported in Edition 40/2008 of the Tax Bulletin.
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11. Decision Impact Statement - KAP Motors updated
The ATO has advised that the KAP Motors decision impact statement has been updated (11 November) to provide guidance on the consequences for income tax purposes of the receipt of a GST refund. Generally a refund of overpaid GST you receive should be returned as assessable income. The DIS provides further explanation, and the Commissioner will be providing further guidance on this aspect in the near future.
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12. Taxation Determinations
TD 2008/26 - Income tax: are bees kept for use in a honey production business trading stock as defined in section 70-10 of the Income Tax Assessment Act 1997?
This ruling was released in draft form as TD 2008/D7
The joint submission lodged by the Institute and various other professional bodies on the draft ruling, and the ATO’s response, is available on the Institute website.
Withdrawal
TD 34W - Notice of Withdrawal - Capital gains: what is meant by the term 'statutory licence' in section 160ZZPE?
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13. Draft Taxation Determination
TD 2008/D16 - Income tax: is interest on a loan fully deductible under section 8-1 of the Income Tax Assessment Act 1997 when the borrowed moneys are settled by the borrower on trust to benefit the borrower and others?
The Institute will be preparing or co-ordinating the preparation of a submission to the ATO in respect of this Draft Taxation Determination. If you have any comments please e-mail them to us at Tax Group by 9 December 2008.
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14. Tax Rulings – Withdrawals
IT 2444W - Notice of Withdrawal - Taxation Ruling Income tax: self assessment of income tax returns: amendment of assessments: remission of interest on underpayments of income tax
IT 2593W - Notice of Withdrawal - Taxation Ruling Income tax: company self assessment: questions for Commissioner's attention: remission of interest on underpayment of income tax
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15. Class Rulings
CR 2008/77 - Income tax: return of capital: Olea Australis Limited
CR 2008/78 - Income tax: Henderson Group plc reorganisation - scrip for scrip roll-over and Foreign Investment Fund (FIF) implications
Withdrawal
CR 2007/48W - Income tax: UBS AG Key employee lending incentive plan
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16. ATO Interpretative Decisions
ATO ID 2008/149 - Capital gains tax: employee share trust - whether capital gain by trustee disregarded - payments by employees to the company issuing the shares as contributions to share capital
Withdrawals
ATO ID 2003/27 (Withdrawn) - Commercial Debt Forgiveness: Applying total net forgiven amount - individual Debtor
ATO ID 2003/41 (Withdrawn) - Commercial Debt Forgiveness: waiver of employee's obligation - fringe benefit
ATO ID 2003/61 (Withdrawn) - Commercial Debt Forgiveness - Transitional Provisions 21 November 2008
ATO ID 2003/63 (Withdrawn) - Commercial debt forgiveness - whether accrued interest on a loan is a separate debt
ATO ID 2003/69 (Withdrawn) - Commercial Debt Forgiveness - application where a company is forgiven a debt
ATO ID 2003/239 (Withdrawn) - Commercial debt forgiveness: consideration - property applied by debtor
ATO ID 2003/268 (Withdrawn) - Commercial debt forgiveness: reduction in gross forgiven amount - calculating net forgiven amount
ATO ID 2003/269 (Withdrawn) - Commercial debt forgiveness: total net forgiven amount- deductible expenditures
ATO ID 2003/274 (Withdrawn) - Commercial debt forgiveness: applying total net forgiven amount - deductible revenue losses
ATO ID 2003/275 (Withdrawn) - Commercial debt forgiveness: determining net forgiven amount - agreements between commonly owned companies
ATO ID 2003/280 (Withdrawn) - Commercial Debt Forgiveness - debt on which no interest is payable
ATO ID 2003/283 (Withdrawn) - Commercial Debt Forgiveness: Forgiveness due to creditor assignment of debt - debt parking
ATO ID 2003/284 (Withdrawn) - Commercial Debt Forgiveness - is debt forgiven where extinguished by the giving of property other than cash?
ATO ID 2003/287 (Withdrawn) - Commercial Debt Forgiveness - Time of incurring of debt under line of credit
ATO ID 2003/292 (Withdrawn) - Commercial debt forgiveness - applying total net forgiven amount - reduction of net capital losses
ATO ID 2003/295 (Withdrawn) - Commercial debt forgiveness - agreement to end debt obligation from a future time
ATO ID 2003/296 (Withdrawn) - Commercial debt forgiveness - no consideration paid or given in respect of the forgiveness of a debt
ATO ID 2003/297 (Withdrawn) - Commercial debt forgiveness - consideration paid or given - calculation of gross forgiven amount of debt
ATO ID 2003/299 (Withdrawn) - Commercial debt forgiveness - what constitutes the forgiven debt if consideration is given in respect of the forgiveness?
ATO ID 2003/300 (Withdrawn) - Commercial debt forgiveness - notional value of a non-moneylending debt where debtor and creditor not dealing at arm's length
ATO ID 2003/301 (Withdrawn) - Commercial debt forgiveness - non-debtor company(s) in group have deductible revenue losses
ATO ID 2003/302 (Withdrawn) - Commercial debt forgiveness - release of debt by debt/equity swap
ATO ID 2003/303 (Withdrawn) - Commercial debt forgiveness - Forgiveness due to bankruptcy
ATO ID 2003/304 (Withdrawn) - Commercial debt forgiveness - Forgiveness of debt due to natural love and affection
ATO ID 2003/305 (Withdrawn) - Commercial debt forgiveness - forgiveness of debt effected under a will
ATO ID 2003/307 (Withdrawn) - Commercial Debt Forgiveness - Moneylending debt
ATO ID 2003/309 (Withdrawn) - Commercial debt forgiveness - what constitutes gross forgiven amount where there are two or more debtors?
ATO ID 2003/310 (Withdrawn) - Commercial debt forgiveness - group of related companies - special rules
ATO ID 2003/318 (Withdrawn) - Commercial debt forgiveness: right to enforce debt ended due to statute of limitations
ATO ID 2003/338 (Withdrawn) - Commercial debt forgiveness - notional value - non-recourse debt
ATO ID 2003/431 (Withdrawn) - Commercial Debt Forgiveness - Notional value - Non-recourse debt - Manufacture of goods exception
ATO ID 2003/453 (Withdrawn) - Commercial debt forgiveness - taxation debt owed to the Commonwealth
ATO ID 2003/496 (Withdrawn) - Commercial Debt Forgiveness - subscription for shares in a company to enable debt to be paid
ATO ID 2003/522 (Withdrawn) - Commercial Debt Forgiveness - what are the record keeping requirements?
ATO ID 2003/531 (Withdrawn) - Commercial Debt Forgiveness - deemed consideration for a non-moneylending debt where debtor and creditor not dealing at arm's length
ATO ID 2003/532 (Withdrawn) - Commercial Debt Forgiveness - what is consideration for moneylending debt
ATO ID 2003/539 (Withdrawn) - Commercial Debt Forgiveness - whether thin capitalisation rules are exception provision
ATO ID 2003/540 (Withdrawn) - Commercial Debt Forgiveness - whether section 82SA of the Income Tax Assessment 1936 is an exception provision
ATO ID 2003/541 (Withdrawn) - Commercial debt forgiveness: meaning of 'debt' - legally enforceable obligation
ATO ID 2003/545 (Withdrawn) - Commercial Debt Forgiveness: state taxes
ATO ID 2003/547 (Withdrawn) - Commercial debt forgiveness: assignment of a debt to an entity associated with the debtor
ATO ID 2003/548 (Withdrawn) - Commercial debt forgiveness - what is consideration for non-moneylending debt?
ATO ID 2003/549 (Withdrawn) - Commercial debt forgiveness - forgiving part of a debt
ATO ID 2003/561 (Withdrawn) - Commercial debt forgiveness: share subscription funds used by associate of the debtor to discharge pre existing debt
ATO ID 2003/571 (Withdrawn) - Commercial debt forgiveness - notional value of debt - debt subject to foreign exchange fluctuations - amount of fluctuations deductible to debtor - effect on calculation of first and second applicable amounts
ATO ID 2003/573 (Withdrawn) - Commercial debt forgiveness - group of related companies - special rules - historically related companies
ATO ID 2003/574 (Withdrawn) - Commercial debt forgiveness - group of related companies - special rules - common ownership
ATO ID 2003/575 (Withdrawn) - Commercial debt forgiveness - agreement to end debt obligation from a future time
ATO ID 2003/579 (Withdrawn) - Commercial debt forgiveness - debt owed to trustee forgiven
ATO ID 2003/580 (Withdrawn) - Commercial debt forgiveness - meaning of 'associate'
ATO ID 2003/581 (Withdrawn) - Commercial debt forgiveness - debt owed by trust to trustee forgiven
ATO ID 2003/699 (Withdrawn) - Commercial debt forgiveness - notional value of non-recourse debt - limitations upon creditor's rights of recourse against debtor
ATO ID 2003/729 (Withdrawn) - Commercial debt forgiveness: application of the total net forgiven amount to related companies
ATO ID 2003/764 (Withdrawn) - Commercial debt forgiveness - no consideration paid or given in respect of the forgiveness of a non-moneylending debt
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17. Practice Statement
PS LA 2008/4 (GA) - Calculating the value of trading stock - bees kept for use in a honey production business
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18. Taxpayer Alerts
TA 2008/19 - Foreign residents attempting to avoid Australian capital gains tax by certain staggered sell down arrangements
TA 2008/20 - Foreign residents exploiting asset valuations to avoid capital gains tax
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19. House of Representative’s draft legislation program – 2008 Spring sittings week 8
The House of Representative has released its draft legislation program for the period 24 to 27 November and it is expected to resume debate on the following tax related Bills:
- Tax Laws Amendment (2008 Measures No. 5) – 24 November
- Tax Agent Services Bill 2008 – 26 November
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20. Senate’s draft legislation program – 2008 Spring sittings week 8
The Senate has released its draft legislation program for the period 15 to 18 September and it is expected to resume debate on the following tax related Bills:
- Tax Laws Amendment (Education Refund) Bill – 25 November
- Tax Laws Amendment (2008 Measures No.5) Bill – 26 November
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21. Recent ATO publications
Booklets and publications
eLink 44/08 - Bulletin to inform tax practitioners of the most recent updates to ato.gov.au including a lead article titled 'Consider fringe benefits tax this festive season'. Issued on 12 November 2008.
Income tax bills due next week - The Tax Office today reminded people who received an income tax bill for 2007-08 that payments begin to fall due from Friday 21 November 2008.
Administration
Portal maintenance schedule - Scheduled downtime for 2008.
Statistics on tax return processing - Welcome to the latest information about Returns and Amendments processing for Individuals.
Coming soon: ato.gov.au refresh - From 22 November the ato.gov.au website will have a new look.
Minutes of meetings and related matters
Personal Tax Advisory Group draft minutes - 2 October 2008 - Draft minutes of the Personal Tax Advisory Group meeting held on 2 October 2008.
NTLG Finance and Investment Sub-group minutes - 16 June 2008 - Finance and Investment Sub-group minutes from the meeting of 16 June 2008.
Superannuation
SMSF annual return question 4 - enter your tax agent practice postal address - When completing your clients' self managed superannuation fund (SMSF) annual returns, be sure to include the postal address of your tax agent practice at question 4 which asks for a 'current postal address' to be entered.
SuperUpdate November 2008 - This edition includes information about first home saver account contributions to super funds, how to lodge member contributions information and whether members will be required to pay excess contributions tax.
Non-profits
Non-Profit News Service No. 0223 - Annual self review for endorsed charities - Nov 2008. We are reminding endorsed charities of the need to undertake regular self-reviews of their status. We also share findings from a recent exercise where we contacted a sample of endorsed charities to make sure they were aware of this obligation.
CGT
Capital gains tax update 2008-09 income year - Update on CGT developments for the 2008-09 income year. Current as at 31 October 2008.
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22. Commissioner warns foreign residents against arrangements to avoid capital gains tax
On 18 November, the Tax Commissioner announced the release of two taxpayer alerts, TA 2008/19 and TA 2008/20, (refer to item 18) which cover arrangements that attempt to circumvent indirect holding rules through staggered sell down arrangements and manipulation of the value of assets.
The Commissioner warns foreign resident vendors not to be tempted to try to avoid their Australian capital gains tax obligations. He said that anyone contemplating entering into such arrangements should carefully consider whether a capital gain arises, as the ATO will be actively examining arrangements if they prove to be ineffective.
He also said that taxpayers who are unsure of their tax obligations should seek independent advice from a person who is not trying to market such scheme or should contact the ATO for assistance, including requesting a free private ruling if they are genuinely uncertain.
The relevant press release is available here.
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23. Revised Australia-Japan treaty to enter into force
On 17 November, the Assistant Treasurer, the Hon Chris Bowen MP, gazetted a notice in pursuance of section 4A of the International Tax Agreements Act 1953 announcing that the revised Australia-Japan treaty for the avoidance of double taxation and the prevention of evasion of income taxes, which was signed on 1 February 2008, will enter into force on 3 December 2008.
The relevant Gazette Notice, S246 is here. The relevant media release on the treaty is here.
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24 Tax help for storm-affected taxpayers
On 21 November, the Tax Commissioner issued a press release to assure taxpayers who have been affected by recent severe storms in Brisbane, the Gold Coast, Central Queensland and surrounding areas that they do not need to worry about their tax compliance at this time.
The Commissioner stated that those affected who are having problems in meeting their tax obligations should contact the ATO on 13 11 42 to make arrangements that accommodate their particular circumstances. Tax agents can also make arrangements on behalf of affected clients by calling the ATO on 13 72 86.
The ATO is also offering the following assistance:
- Fast tracking refunds
- Allow extra time to pay debts without interest charges
- Allow more time to meet BAS and other lodgement obligations without penalties
- Help reconstructive tax records where documents have been destroyed.
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Tax Update for Business
Throughout November 2008 and March 2009 in Sydney, Melbourne, Adelaide, Perth and Brisbane. In just 3 hours, explore the current and impending legislative changes across all areas of taxation relative to business.
Trusts and Tax for Property Seminars
Throughout November in Dubbo, Port Macquarie and Lismore. Unlock the tax benefits in trusts. Analyse the key tax attributes of trusts and recent litigation developments, and learn how those tax attributes can be used effectively in a commercial environment.
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Help us to improve the bulletin by sharing your tax issues and experiences that might be of interest to other members. Responses should be emailed to taxgroup@charteredaccountants.com.au
Disclaimer
The Institute has created and maintains this tax bulletin as a service to its members and the community. While some of the information provided is about legal issues and legislation, it is not legal advice. The Institute does not expect or invite any person to act or rely on any statement, view or opinion expressed in this bulletin, and readers should make and rely on their own inquiries in making any decisions or giving any advice.
The Institute accepts no responsibility for any errors or omissions contained in this bulletin, and disclaims all warranties with regard to the information at this bulletin, including all implied warranties of merchantability and fitness for a particular purpose. In no event shall the Institute be liable for any loss or damage arising out of or in connection with the use of this bulletin or the information contained in it, including special, indirect or consequential loss or damage, and whether such loss or damage arises in contract, negligence, tort, under statute, or otherwise.
The material provided in this bulletin is protected by copyright. Apart from any use permitted under the Copyright Act 1968, no part of any material may be reproduced or provided to the public or to any person, in any form or by any means, without written permission from the Institute or the relevant copyright owner.
Any information provided to the Institute in connection with this bulletin shall be provided by the submitter and received by the Institute on a non-confidential basis. The Institute shall be free to reproduce, use, disclose and distribute this information to others without limitation.
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