Legal Insights
Extension of time to rectify non-commercial LRBA loans – deadline now 31 January 2017
In our previous Time For Action article the deadline for ensuring existing non-commercial limited recourse borrowing arrangement (LRBA) loans were put on commercial terms was 30 June 2016.
'No goodwill' professional practices - The ATO’s administrative treatment of acquisitions and disposals of interests in such practices
The ATO has recently released guidelines on its administrative treatment for the application of certain tax issues when interests in ‘no goodwill’ professional partnerships, trusts and incorporated practices (practices) are acquired or disposed.
Time for action: safe harbour guidelines issued by the ATO for related party LRBA loans
On 6 April 2016, the ATO issued Practical Compliance Guidelines PCG 2016/5 Income tax - arm's length terms for Limited Recourse Borrowing Arrangements established by self managed superannuation funds (Guideline)
General limited partnership business structures under review by ATO
In Taxpayer Alert TA 2015/4 (Alert) the Commissioner has issued a warning that the Australian Taxation Office is actively investigating arrangements involving a general limited partnership structure that are being used as a vehicle to minimise the tax liability of individual stakeholders involved.
New tax measures for farmers available immediately
Farmers are relieved by the Federal Government’s decision to bring forward the start date for new farm tax breaks.
'Reinventing the ATO' blueprint released including new online resource
On Thursday 19 March the Australian Taxation Office (ATO) released their program blueprint “Reinventing the ATO”. The ATO stated that the blueprint describes the kind of experience that Australians expect to have when they deal with the ATO and that it will guide everything that the ATO does in the coming years.
1,400 ACNC Charities face deregistration and loss of tax concessions
The ACNC have announced that up to 1,400 ACNC registered charities face deregistration unless they lodge their Annual Information Statement (AIS) by 30 March 2015. Each of these charities has failed to lodge their AIS for 2 consecutive years. If deregistered, they will no longer be eligible for charity tax concessions including income tax, fringe benefit tax and GST.
Beware of waiving privilege when disclosing the 'gist' of advice
In the recent Federal Court case of Krok v Commissioner of Taxation[1] a taxpayer was implied to have waived the right to legal professional privilege by disclosing documents which refer to the purpose and reasoning of legal advice. As a result, the taxpayer may be required to discover documents that would otherwise have been protected.
Business Restructure Roll-Overs Extended in Tax Law Bill No. 6 2014
The Tax and Superannuation Laws Amendment (2014 Measures No 6) Bill 2014 (the Bill) has now been passed by both Houses of Parliament and is expected to receive assent shortly.
Project DO IT
Voluntary disclosures relating to the Australian Tax Office’s (ATO) “Project DO IT” initiative must be made before 19 December 2014.
Read The Trust Deed: Pope’s Case - Unpaid Present Entitlement and Bad Debt Deductions
A recent case in the Administrative Appeals Tribunal (Pope v FC, known as Pope’s Case) is of interest to taxpayers and their advisers, with respect to the characterisation of unpaid trust entitlements (UPEs) as loans.
Transfers of cash and money from private companies in family law settlements
On 30 July 2014 the Australian Taxation Office issued Taxation Ruling TR 2014/5 (previously released in draft form as TR 2013/D6) addressing the taxation effect of an order by the Family Court under section 79 of the Family Law Act 1975 for a private company to pay money or transfer property to a shareholder or their associate.
Australia’s Charities and Not-for-profits - Options Paper released
In line with its election promise to abolish the Australian Charities and Not-for-profits Commission (ACNC), the Abbott Government has now released Options Paper, Australia’s Charities and Not-for-profits which seeks feedback on its proposed arrangements for charities in Australia. The Government’s proposed arrangements attempt to balance the administrative burden of reporting with the need for organisations receiving concessional tax treatment to be publicly accountable.