The Full Federal Court of Australia denied the application of the CGT small business 50% active asset reduction on the basis that an unusual activity carried on by an associated entity to the taxpayer contributed to the aggregated annual turnover of the taxpayer and associated entity to be more than $2,000,000.

As has become tradition, particularly in the United States, sports leagues and clubs have been busy unveiling their 2016 Christmas Day uniforms ahead of the festive season. 

On 10 October 2016, the Federal Government released an Exposure Draft to amend the debt and equity rules in Division 974 of Income Tax Assessment Act 1997 for the purpose of implementing recommendations made by the Board of Taxation in its April 2015 report Review of the Debt and Equity Tax Rules.

It’s FOOTY FINALS TIME!  With the two Sydney teams, Sydney Swans and GWS Giants, doing battle with Geelong and the Western Bulldogs respectively in this weekend’s preliminary finals, fans will be flocking to both the MCG and Spotless Stadium tonight and tomorrow for the big games

The Government has confirmed that the proposed increase of the aggregated turnover threshold for small business entities of $10 million will apply to the Small Business Restructure Roll-over relief provisions available from 1 July 2016.

Sporting clubs and incorporated associations need to make sure that paid workers and volunteers who engage in “child-related” work have a valid Working with Children Check. 

Rio 2016 began with a typically extravagant opening ceremony on Saturday morning AEST. Unfortunately however, according to the Sydney Morning Herald, Channel Seven's 9.00am broadcast of the event averaged only 2.25 million regional & metropolitan viewers, the lowest rating opening ceremony since 2001 when the OzTam rating system began.

One of the many ways in which the government is encouraging innovation is through a series of Research and Development tax incentives, in particular the R & D Tax Incentive Program. 

A sporting club may handle a considerable amount of money in a single financial year. Whether it be membership revenue, ground maintenance costs or even the weekly sausage sizzle intake – everything adds up!

On 15 June 2016, the AFL made the historic announcement that eight clubs would compete in the inaugural season of the women’s national league in 2017. During February and March next year, Adelaide, Brisbane, Carlton, Collingwood, Fremantle, Greater Western Sydney, Melbourne and the Western Bulldogs will participate in six home-and-away rounds, with the top four playing two semi-finals and a Grand Final. 

Incorporated sporting clubs and associations have distinct obligations to fulfil as a legal entity. Committee members, directors, coaches and volunteers each have a role to play in the team and it is vital that all involved understand the different policies that are applicable to the club and its members. Here are just two policy considerations for ensuring “good play” in your local sporting organisation.

Yes, the team with the best single-season record in NBA history just got better…Kevin Durant, the 2014 Most Valuable Player, 7-time NBA All Star, 5-time All-NBA First Team member and 4-time scoring champion, has agreed to sign with the Golden State Warriors.

As a director of a company, you have a duty to act in its best interests. 

In undertaking your role as a director, you may face a situation where the interests of the company come in to conflict with your own personal interests. 

What duties do you owe to the company in relation to conflicts of interests?

There are many things young lawyers are told before starting their graduate year - get ready to work 60 hour weeks, never leave your desk, be a slave to the firm and that there is certainly no time for anything other than work. 

The Administrative Appeals Tribunal (AAT) recently held in FLZY and Commissioner of Taxation that profit arising from the sale of a building by a family trust that was part of a privately held family group (Group) gave rise to a discount capital gain despite the wider property building, development and investment activities undertaken by the Group. The decision demonstrates the importance of considering a taxpayer’s purpose and intention when acquiring and developing real estate within the broader factual context of the activities undertaken by a taxpayer and any related entities.

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. 

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. 

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)

In December 2015 The Australian Taxation Office (ATO) stated that it would not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016.  It was recommended that LRBA loans should be put on arm’s length terms by 30 June 2016. If that occurred then the ATO had stated that it would not actively review such non-commercial LRBAs for prior years.

The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2015 (amending guidelines) propose to amend the currentPrivate Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011 (together, the Guidelines), with the changes to apply from 1 July 2016.  The Guidelines set minimum standards for the governance and conduct of ancillary funds and their trustees, breach of which can result in a revocation of charitable and/or concessional tax status.  Therefore, trustees of ancillary funds need to familiarise themselves with these changes.