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Taxation

Cryptocurrencies – keep your records

Cryptocurrencies – keep your records

In light of the ATO’s current position that income from cryptocurrency sales will generally be taxed under capital gains tax (CGT) provisions and increased scrutiny on cryptocurrency transactions, taxpayers should ensure they keep accurate records of cryptocurrency transactions.

 Cryptos, CGT and the Personal Use Asset Exemption

Cryptos, CGT and the Personal Use Asset Exemption

Did you or do you currently hold cryptocurrencies? Did you sell any cryptocurrencies before finding out that the Australian Tax Office (ATO) would vigilantly tax cryptocurrency sales? Are you left scratching your head after reading the ATO’s guidance? If so, you are one of many Australians currently finding themselves in an uncertain tax situation.

Corporate tax residency – who controls your foreign entities?

Corporate tax residency – who controls your foreign entities?

Foreign companies that may be controlled by an Australian entity should review their decision-making based on the Australian Taxation Office (ATOTaxation Ruling, TR 2018/5 (TR 2018/5).  It is timely for Australian groups with foreign-incorporated subsidiaries to consider whether they are appropriately managing tax residency risk by re-visiting and/or implementing tax residency protocols and ensuring that they can be applied practically.

Government To Consider Individual Tax Residency Rules

Government To Consider Individual Tax Residency Rules

This week the government released the Board of Taxation report on a new tax residency model for individuals with a position that further analysis and consideration on the key recommendations is required before the Government takes a position. 

Lessons From Stojic: It Is Better To Under Promise And Over Deliver When Negotiating Payment Arrangements With The ATO

Lessons From Stojic: It Is Better To Under Promise And Over Deliver When Negotiating Payment Arrangements With The ATO

The Commissioner of Taxation (Commissioner) has power pursuant to section 255-15(1) of Schedule 1 to the Taxation Administration Act 1953 (TAA) to permit a taxpayer to pay off its tax debts by instalments in accordance with a payment arrangement. The recent Federal Court decision of Stojic v Deputy Commissioner of Taxation [2018] FCA 483 (Stojic), which dismissed an application by the sole director and shareholder of the taxpayer company to review a decision by the Commissioner to decline to exercise that power, provides two important lessons.   

Court Rules On Private Rulings Involving Assumptions About Future Events

Court Rules On Private Rulings Involving Assumptions About Future Events

The recent case of  FCT v Hacon illustrates the practical difficulties in obtaining a private ruling that depends on assumptions about future events - in particular, in the context of the application of the anti-avoidance provisions in Part IVA of the Income Tax Assessment Act 1936.

New GST withholding regime for purchasers of new residential premises and new subdivisions of potential residential land

New GST withholding regime for purchasers of new residential premises and new subdivisions of potential residential land

From 1 July 2018 purchasers of new residential premises or of new subdivisions of potential residential land that are taxable supplies will be required to pay 1/11th of the purchase price directly to the Australian Taxation Office (ATO) at settlement, if  the exposure draft legislation released by the Government on 6 November 2017 passes in its current form.  Subject to limited exceptions under proposed transitional rules, the new GST withholding obligation will apply even if a vendor applies the GST margin scheme.

Commissioner is under no duty to issue amended land tax assessments

Commissioner is under no duty to issue amended land tax assessments

The High Court of Australia has recently allowed an appeal against a decision of the Victorian Court of Appeal and found that the Commissioner of State Revenue (Commissioner) was not under a duty to issue amended assessments and refund an excess amount of land tax that was erroneously been paid by a taxpayer.