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10 Apr 2019 | Tax Brief | Energy & Resources | Corporate and Mergers & Acquisitions | International | Private Equity

Resource Capital Fund case again: Two steps forward, one step back in Full Federal Court

The Resource Capital group of funds is doing its best to clarify Australian domestic tax law and tax treaty treatment of private equity purchases and sales of Australian mining companies through limited partnerships. Its latest foray into the Full Federal Court represents an advance in resolving the difficult technical and practical issues that arise, but there are also unresolved issues that require prompt action to bring the ongoing uncertainty in this area to an end.

(308 kb)

02 Apr 2019 | Tax Brief

Budget Tax Brief 2019-20

As expected, so far as tax is concerned, the main focus of this year’s Budget is delivering cuts for individuals, and increasing investment in infrastructure. Nevertheless, there are a few tax proposals which will have important elements on business, subject of course, to the outcome of the election. Our Budget Brief outlines the key elements for Australian businesses.

(1110 kb)

07 Nov 2018 | Tax Brief | Corporate and Mergers & Acquisitions | Private Wealth

Vacillation in Small Business Territory

The taxation of small business entities has seen more than the usual degree of schizophrenia in the last few weeks. While there were tax cuts for small business, Treasury released a Consultation Paper outlining proposed amendments to Div 7A. These measures are, for the most part, decidedly not concessional.

Tax Brief 7 November 2018 - Vacillation in Small Business Territory (240 kb)

16 Oct 2018 | Tax Brief | Private Wealth

Taxing private trusts - a moving target

Our revenue authorities have been very active recently issuing judgments, making pronouncements and intensifying enforcement activity, all directed to the way the tax system operates in relation to income made from, and gains arising on transactions with, assets that are held on trust. This Tax Brief highlights the effects of some of the more important developments affecting private trusts.

Tax Brief - Taxing private trusts – a moving target (322 kb)

21 Sep 2018 | Tax Brief

Reflections on the Rulings System

The original policy behind the rulings system was to give taxpayers certainty about their tax position so that they could correctly report their past transactions, and plan their future transactions with some certainty. But a recent Federal Court decision reveals another problem in the way the private ruling system has evolved in the last 25 years, and the difficulty taxpayers face in getting certainty about proposed transactions. It may be time for Parliament to revisit the design.

30 Jul 2018 | Tax Brief | Real Estate | Projects & Infrastructure

Stapled Structure Integrity Measures – Revised Exposure Draft

On 26 July 2018, the Government released revised draft legislation to give effect to various announced integrity measures aimed primarily at stapled groups. In this Tax Brief we focus on the changes from the original draft.

Tax Brief 30 July 2018 - Stapled Structure Integrity Measures – Revised Exposure Draft (222 kb)

21 May 2018 | Tax Brief | Real Estate

Stapled structures: integrity measures

The Government has released draft legislation containing the proposed integrity measures for stapled groups. This follows the Government announcement in relation to the proposed integrity measures as addressed in our Tax Brief of 28 March 2018. This Tax Brief focuses on the impact of the measures on the real estate sector. A separate Riposte addresses the impact on the infrastructure sector. Generally, the measures should not affect stapled groups that do not have material cross-staple dealings.

Tax Brief: Stapled Structures - Impact of proposed integrity measures on real estate groups 21 May 2018 (212 kb)

21 May 2018 | Tax Brief | Real Estate

Stapled structures: integrity measures

The Government has released draft legislation containing the proposed integrity measures for stapled groups. This follows the Government announcement in relation to the proposed integrity measures as addressed in our Tax Brief of 28 March 2018. This Tax Brief focuses on the impact of the measures on the real estate sector. A separate Riposte addresses the impact on the infrastructure sector. Generally, the measures should not affect stapled groups that do not have material cross-staple dealings.

Tax Brief: Stapled Structures - Impact of proposed integrity measures on real estate groups 21 May 2018 (212 kb)

08 May 2018 | Tax Brief

Budget tables

TBA

08 May 2018 | Tax Brief

Budget 2018-19

While much of the ‘good news’ in this year’s Budget was already well known by Budget night, there were still a few surprises in the package. Our Tax Brief unpicks the major tax components of Australia’s 2018-19 Budget.

Tax Brief - Budget 2018-19 (318 kb)

28 Mar 2018 | Tax Brief | Real Estate

Stapled structures: integrity measures

Following on from the Australian Taxation Office’s concerns in TA 2017/1, the Government has proposed sweeping changes to the tax laws that will impact on a range of stapled and non-stapled structures. The measures will: (i) apply a 30% withholding tax rate to most income derived from cross-stapled arrangements; (ii) treat ownership of agricultural land as a trading business, even if used for rental purposes; (iii) expand the thin capitalisation rules to require gearing to be calculated on a look-through basis for interests of 10% or more; and (iv) limit the exemptions currently enjoyed by foreign sovereign entities and pension funds. This Tax Brief focuses on the impact of the measures on the real estate sector. A separate Riposte addresses the impact on the infrastructure sector. Generally, the measures should not affect stapled groups that do not have material cross-staple dealings.

Tax Brief - Stapled groups integrity measures 28 March 2018 (261 kb)

13 Feb 2018 | Tax Brief

US Tax Reform and its Implications for Australia

This tax brief discusses those aspects of the US tax reform which have most relevance to Australian corporate and international taxation, both from a tax policy perspective and for inbound and outbound investment to and from the US. The reform is complex particularly in relation to cross-border transactions and surprisingly adopts much of the OECD BEPS work. Taxpayers around the world with investments in the US need to scramble to adjust to the many tax changes which are already in effect, as do the US Treasury and the IRS to provide the necessary guidance. And other countries need to consider how to react, which is not as straightforward as often suggested.

(198 kb)

04 Dec 2017 | Tax Brief

More ruminations on valuation issues

The market value of an asset is a pervasive feature of tax law, but the process of valuing assets is almost always problematic. This Tax Brief examines what the recent decision in Placer Dome [2017] WASCA 165 adds to our knowledge about the law governing valuation for duty and income tax.

(88 kb)

24 Aug 2017 | Tax Brief

Chevron - What did we learn?

The long running debt transfer pricing dispute between Chevron Australia and the Australian Taxation Office is over which means the Full Federal Court’s decision handed down in April this year will remain the leading authority on Australian transfer pricing law for some time. This Tax Brief outlines some key practical lessons from the case.

(221 kb)

08 Aug 2017 | Tax Brief

Australia's Future Tax System?

If the opinion polls are to be believed, and nothing remarkable happens in the next 18 months, the ALP will win the 2019 election. That makes their tax agenda worthy of attention. This Tax Brief catalogues a few important policies that may be just around the corner.

(88 kb)

09 May 2017 | Tax Brief

Budget 2017-18

While Budget 2017-18 contains few tax measures, many of them are not especially welcome. Our Tax Brief explores the main elements of the tax announcements.

(267 kb)

27 Apr 2017 | Tax Brief | International

Lessons from Chevron

The Full Federal Court decision in Chevron offers valuable lessons to multinational companies when it comes to managing the transfer pricing risks involved in intra-group financing.

(274 kb)

16 Feb 2017 | Tax Brief | International

Diverted Profits Tax

The Diverted Profits Tax legislation is now before Parliament. Its broad and draconian application should concern foreign and domestic multinationals alike.

(256 kb)

13 Feb 2017 | Tax Brief | Projects & Infrastructure

Draft infrastructure & privatisation framework

The ATO has released a draft framework which sets out the ATO’s overall non-binding position on a number of infrastructure related tax issues.

(351 kb)

01 Feb 2017 | Tax Brief | International

BEPS big bang complexity for income tax treaties - on a delayed fuse

The OECD has released the multilateral instrument or MLI to give effect to BEPS Actions involving changes to tax treaties – this Tax Brief discusses how and when the MLI will operate and the likely Australian position.

(255 kb)

31 Jan 2017 | Tax Brief | Real Estate

TA 2017/1: impact on property groups

Stapled property groups need to look closely at their cross staple arrangements or risk raising the ire of the ATO.

(200 kb)

31 Jan 2017 | Tax Brief | Projects & Infrastructure

TA 2017/1: impact on infrastructure groups

Stapled infrastructure groups need to look closely at their cross staple arrangements or risk raising the ire of the ATO.

(374 kb)

11 Nov 2016 | Tax Brief

Tax in the age of blockchain

Blockchain will radically change everything you currently know and do, the way you do it and how it is taxed. Or maybe not. We ruminate on the future.

(78 kb)

20 Oct 2016 | Tax Brief

Debt-equity amendments

A draft of the rules to repeal the much-maligned s.974-80 is finally available, but the replacement is a disappointing melange of indecisive text. It could well cause as much heartache as the provision being replaced. We examine the good, the bad and the decidedly curious in the draft legislation.

Debt-equity Amendments (235 kb)

16 Jun 2016 | Tax Brief | Private Wealth

Does your tax governance framework live up to ATO expectations?

The ATO has released a new online resource to assist private groups “get things right”, particularly when it comes to tax governance.

04 May 2016 | Tax Brief

Australia’s 2016-17 Budget

The 2016-17 Budget revealed the usual mixture of revenue-depleting measures (personal income and small business tax cuts) paid for by increased taxes on superannuation and the promise of a huge windfall from greater scrutiny of multinationals. Details are in our Tax Brief.

(156 kb)

14 Dec 2015 | Tax Brief

The Orica decision and its implications

The ATO chalked up a significant win in the battle against anti-avoidance in the Federal Court Decision in Orica: even the threshold for a “reasonably arguable position” was not met.

The Orica decision and its implications (208 kb)

03 Dec 2015 | Tax Brief | Real Estate

The new landscape for managed investment trusts

Rules governing the taxation of income derived through “attribution managed investment trusts” or AMITs have been introduced. This critical development in the tax landscape will affect trusts used in the property, infrastructure and investment management sectors.

New landscape for managed Investment trusts (312 kb)

05 Nov 2015 | Tax Brief | International

The Chevron transfer pricing case – the story so far

The Federal Court has found in favour of the Commissioner in one of the most closely-watched tax cases in recent years.

Chevron (283 kb)

09 Oct 2015 | Tax Brief | International

G20/OECD deliver BEPS project but it’s not over

The OECD's final deliverables for the BEPS project have been released with Final Reports to be approved by the G20 Finance Ministers on 8 October 2015. Although it was proposed that some BEPS work would not be completed until December 2015, the OECD Press release says these Reports are “the final package of measures”. If only they were!

(297 kb)

06 Oct 2015 | Tax Brief

Amendments to Part IVA

A Bill expanding the operation of Part IVA for multinationals and increasing associated administrative penalties was recently introduced into Parliament. The amendments reflect a move away from the traditional operation of Part IVA and are indicative of the future direction of anti-avoidance legislation.

(226 kb)

21 Jul 2015 | Tax Brief | International

Collecting non-residents’ tax liabilities

An ED has been released of legislation that will impose a liability on buyers to remit 10% of the purchase price when they purchase certain land and resource-related assets from non-residents. It is likely to catch some sellers unaware and will undoubtedly lead to changes in the way sales transactions are handled. This Tax Brief outlines the key elements of the measure.

(236 kb)

16 Jul 2015 | Tax Brief

Amendments to the company loss rules

Amongst other amendments, Tax and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015 (introduced into Parliament on 24 June 2015) contains some changes to the company loss integrity rules. This Tax Brief details those changes.

(101 kb)

15 May 2015 | Tax Brief

Part IVA & consolidations: Channel Pastoral

The Full Federal Court decision in Channel Pastoral Holdings Pty re-considered the interaction between Part IVA and the tax consolidation rules previously considered by the Full Federal Court in Mongoose. The majority’s conclusion that the Commissioner can give effect to a Part IVA determination by issuing an assessment to a subsidiary member of a tax consolidated group is likely to raise a number of difficulties.

(389 kb)

12 May 2015 | Tax Brief

Australia’s 2015-16 Budget

Even though many Budget measures had been formally announced already and the Government is still in the midst of its tax White Paper process, the Budget did contain a few tax surprises. This Tax Brief outlines the main tax measures in the Budget.

(275 kb)

10 Apr 2015 | Tax Brief | Real Estate

The New Attribution MIT Regime

The recently released exposure draft legislation proposes a new regime for taxing income derived through “attribution managed investment trusts”. This Tax Brief considers each of the key measures of the new regime and certain other measures in the ED as well as some changes we might expect in the ultimate legislation.

The New Attribution MIT Regime (412 kb)

09 Apr 2015 | Tax Brief

IMR - Fourth Time Lucky?

Treasury has released the fourth draft of the Investment Manager Regime Element 3. The draft is a considerable advance over the previous versions, but incorporates a significant change in structure and drafting. This Tax Brief highlights the changes from previous drafts of the legislation.

(116 kb)

07 Apr 2015 | Tax Brief

Tax Discussion Paper - A Reader's Guide

The Government recently released a Discussion Paper on reform to Australia’s tax system. This Tax Brief examines the document, including some of the areas which the Paper singles out for detailed attention.

The Tax Discussion Paper - A Reader's Guide (120 kb)

27 Feb 2015 | Tax Brief | International

The BEPS avalanche

The G20/OECD base erosion and profits shifting (BEPS) project rolls on and has recently developed the momentum of an avalanche. This Tax Brief reviews the Brisbane and Istanbul outcomes and the recent OECD discussion papers on the definition of permanent establishment, transfer pricing, interest deductions and dispute resolution.

(235 kb)

21 Oct 2014 | Tax Brief | Corporate and Mergers & Acquisitions | Employment & Superannuation

Employee share & option plan changes

The Government confirmed in its 14 October 2014 Industry Innovation and Competitiveness Agenda announcement that it will roll-back at least part of the 2009 changes to the taxation of employee share and option plans, with start-up companies to be the major beneficiaries.

Employee share and option changes (40 kb)

23 Sep 2014 | Tax Brief | International

BEPS on Steroids?

This Tax Brief provides an overview of the BEPS Action Plan items released by the OECD and welcomed by G20 Finance Ministers at their recent meeting in Cairns.

BEPS on Steroids? (118 kb)

03 Jul 2014 | Tax Brief

New Corporate Tax Rate and Parental Leave Levy

This Tax Brief considers a variety of steps that might be taken now in preparation for these changes, and what the future will hold once the changes take effect.

Preparing for the New Corporate Tax Rat and Parental Leave Levy (40 kb)

13 May 2014 | Tax Brief

Australia's Budget for 2014-15

The Treasurer has announced a shopping list of modest business tax changes in this year’s Budget. This Tax Brief outlines the main tax measures and what they will mean for Australian business.

Australia's Budget for 2014-15 (135 kb)

08 Apr 2014 | Tax Brief

Board of Taxation's Paper on the Debt and Equity Rules

The Board of Taxation has released a Discussion Paper as part of the review of the debt / equity rules commissioned by the previous government. This Tax Brief outlines the principal areas of focus of the Paper and the main issues it puts on the table for review.

Board of Taxation's Paper on the Debt and Equity Rules (234 kb)

24 Mar 2014 | Tax Brief | Financial Services | International

OECD Recommendations on Cross-border Hybrids

This Tax Brief analyses two OECD Public Discussion Drafts on ‘neutralising the effects of hybrid mismatch arrangements’ and their implications, both for Australia’s future treaty practice and for some common cross-border structures and instruments.

OECD Recommendations on Cross-border Hybrids (316 kb)

10 Mar 2014 | Tax Brief

International tax in 2014: The lull before the storm?

In November and December 2013 the government announced its decisions on previously announced but unenacted tax measures, including to proceed with several of international significance. This Tax Brief canvasses the status of these announcements.

International tax in 2014: The lull before the storm? (59 kb)

16 Dec 2013 | Tax Brief

Further Developments on Unenacted Measures

The Assistant Treasurer has announced the next step in the government’s campaign to address the long list of unenacted measures. This Tax Brief outlines what is to happen now.

Further Developments on Unenacted Measures (159 kb)

02 May 2012 | Tax Brief

Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Consolidation Exposure Draft provisions (62 kb)

07 Jul 2011 | Tax Briefs | Financial Services

Limited Recourse Debt

The recent High Court decision in the BHP-Billiton Finance case brings to an end the ATO’s long, and ultimately fruitless, litigation against the BHP-Billiton group. This Tax Brief analyses the significance of the final judgment in this long and complex series of cases.

Limited Recourse Debt (50 kb)

15 Jul 2011 | Tax Briefs | Energy & Resources

Climate change – New carbon pricing mechanism announced

On Sunday, the Government released its much anticipated, and already keenly debated, climate change plan. At the Centrepiece of the plan is a Carbon Pricing Mechanism. This Tax Brief explains the tax impacts arising from the CPM, and other tax related measures in the climate change plan.

Climate change – New carbon pricing mechanism announced (92 kb)

24 Aug 2011 | Tax Briefs

ATO continues the distribution confusion

The ATO has released two draft fact sheets relating to the 2010 amendments to corporate law and the income tax in relation to dividends. This Tax Brief relates the background to the amendments, provides an analysis of the fact sheets and the problems they will cause, and then sets them against a broader context of increasing taxpayer confusion in relation to corporate distributions.

ATO continues the distribution confusion (127 kb)

02 Nov 2012 | Tax Briefs | Real Estate

Some Progress on Trust Tax Reform

This Tax Brief analyses Treasury's two proposals in presented in Options Paper concerning the new regime to tax income passing through trusts. It also considers what the future might look like for those managed investment trusts (‘MITs’) which will not qualify for the new MIT attribution regime, and for the trusts into which MITs and non-MIT trusts will invest.

Some Progress on Trust Tax Reform (157 kb)

06 Nov 2013 | Tax Briefs

Cleaning up the Backlog of Unenacted Measures

Treasurer Joe Hockey announced that the backlog of announced but unlegislated tax policy would be cleaned up. This Tax Brief is about today’s announcement in which he sets out the results of that effort.

Cleaning up the Backlog of Unenacted Measures (67 kb)

16 Nov 2011 | Tax Briefs | Corporate and Mergers & Acquisitions

Exposure Draft on Share Buybacks

This Tax Brief considers exposure draft legislation released by Treasury which will rewrite the share buyback rules into the Income Tax Assessment Act 1997.

Exposure Draft on Share Buybacks (69 kb)

20 Jan 2012 | Tax Briefs

Distribution clarity? Round 3

On 21 December 2011 the ATO released TR 2011/D8 dealing with the relationship of the new corporate law rule for dividends and the tax legislation, along with counsel’s legal opinion it has obtained as part of the process. Unfortunately the draft ruling creates as many uncertainties as it solves.

Distribution clarity? Round 3 (64 kb)

12 Aug 2013 | Tax Briefs | Real Estate

IMR and MIT: A going-away present?

This Tax Brief considers the status of certain promises by the Labor Party to make Australia an Asian funds management hub.

IMR and MIT: A going-away present? (49 kb)

14 Oct 2011 | Tax Briefs | Energy & Resources

Minerals Resource Rent Tax - 2nd Exposure Draft

This Tax Brief summarises the main changes in the second draft of an Exposure Draft Bill and Explanatory Memorandum for the proposed MRRT incorporating additional provisions and feedback from the first draft (released on 10 June 2011).

Minerals Resource Rent Tax - 2nd Exposure Draft (101 kb)

09 Oct 2012 | Tax Briefs

Adjusting Consolidation, Again

This Tax Brief outlines the issues that the Board of Taxation is examining in its review of the consolidation regime and some of the implications of the Board’s reform proposals for the future.

Adjusting Consolidation, Again (112 kb)

28 Mar 2012 | Tax Briefs | Energy & Resources

Energy Tax Reform Packages

Despite the precarious state of the Parliament, the Government has managed to enact both its carbon tax package and the minerals resource rent tax Bills. This Tax Brief is a snapshot of what has happened and what happens next.

Energy Tax Reform Packages (54 kb)

16 Dec 2013 | Tax Briefs

Further Developments on Unenacted Measures

The Assistant Treasurer has announced the next step in the government’s campaign to address the long list of unenacted measures. This Tax Brief outlines what is to happen now.

Further Developments on Unenacted Measures (159 kb)

11 May 2011 | Tax Briefs

Budget 2011-12

This Tax Brief provides insights into the tax measures announced in Australia's Budget for 2011-12.

Budget 2011-12 (120 kb)

05 Dec 2012 | Tax Briefs

Proposed Reforms to Part IVA

This Tax Brief examines what the draft amendments to Part IVA change and how they are meant to work.

Proposed Reforms to Part IVA (113 kb)

05 Sep 2011 | Tax Briefs | Energy & Resources

Tax certainty for farm-outs?

This Tax Brief reviews recent draft rulings on the income tax and GST consequences of farm-out arrangements and concludes that the rulings go some way to addressing the uncertainty but leave many uncertainties remaining.

Tax certainty for farm-outs? (145 kb)

20 Feb 2013 | Tax Briefs

Part IVA Amendments Released

This Tax Brief examines what the amendments to Part IVA change and how they are meant to work.

Part IVA Amendments Released (201 kb)

24 Jan 2013 | Tax Briefs | Financial Services

Reforms to TOFA Rules

This Tax Brief outlines the main impacts of the proposals in an Exposure Draft of amendments to the rules governing the taxation of financial arrangements (‘TOFA’).

Reforms to TOFA Rules (106 kb)

20 Dec 2012 | Tax Briefs | Corporate and Mergers & Acquisitions

Dividends For Christmas - Again!

Treasury has released an Exposure Draft of legislation for a replacement of the corporate law dividend test enacted in 2010. What does it mean for tax?

Dividends For Christmas - Again! (27 kb)

14 Aug 2012 | Tax Briefs

Business Tax Working Group Discussion Paper on Corporate Tax Cuts

The Business Tax Working Group (‘BTWG’) has released its much-anticipated Discussion Paper on reforming Australia’s corporate tax. This Tax Brief analyses the options being presented and some of the difficult questions that are still unresolved.

Business Tax Working Group Discussion Paper on Corporate Tax Cuts (111 kb)

20 Apr 2012 | Tax Briefs

The Income of a Trust - Taxation Ruling 2012/D1

This Tax Brief considers draft TR 2012/D1 (‘the Ruling’) dealing with the meaning of the word ‘income’ in connection with trusts.

The Income of a Trust - Taxation Ruling 2012/D1 (113 kb)

12 Mar 2012 | Tax Briefs | Energy & Resources

Minerals Resource Rent Tax

Australia’s Mineral Resource Rent Tax (MRRT) on iron ore and coal projects commences on 1 July 2012. The MRRT was passed by the Australian Parliament on 19 March 2012. This Tax Brief summarises the main provisions of the enacted legislation.

Minerals Resource Rent Tax (89 kb)

07 Dec 2011 | Tax Briefs

Distribution Clarity?

This Tax Brief comments on a Discussion Paper by Treasury on further possible amendments to the Corporations Act and a communication from the ATO which seems to retract in part the conclusion in the draft fact sheets.

Distribution Clarity? (68 kb)

02 Dec 2011 | Tax Briefs

Tax Consolidation - Fundamental Retrospective and Prospective Changes Announced

This Tax Brief contemplates the significance of a press release announcing a range of critically important changes to the tax consolidation regime, some with retrospective application and associated Board of Taxation report was simultaneously released.

Tax Consolidation - Fundamental Retrospective and Prospective Changes Announced (125 kb)

11 Aug 2011 | Tax Briefs | Energy & Resources

Minerals Resource Rent Tax

On 10 June, the government released for public comment preliminary and still incomplete Exposure Draft legislation for the proposed minerals resource rent tax (‘MRRT’). This Tax Brief summarises the main provisions of the draft legislation in its current form.

Minerals Resource Rent Tax (115 kb)

08 Apr 2011 | Tax Briefs

Part IVA Outbreak

This Tax Brief examines recent decisions by the Australian Courts addressing the application of Part IVA both for the light they shed on the current operation of Part IVA and for what they reveal about how Part IVA might be changing in the near future.

Part IVA Outbreak (139 kb)

08 Mar 2011 | Tax Briefs

Further Changes to the Taxation of Trusts

This Tax Brief discusses proposed legislative amendments announced on 4 March 2011 which will be directed at clarifying some of the uncertainties of trust taxation following the Bamford case.

Further Changes to the Taxation of Trusts (63 kb)

23 Dec 2010 | Tax Briefs

Collective Investment Vehicles

On 17 December 2010 the Assistant Treasurer announced changes to allay Australian tax concerns of US fund managers and the Board of Taxation released its discussion paper on further revamping Australia’s tax rules for collective investment vehicles.

Collective Investment Vehicles (71 kb)

03 May 2010 | Tax Briefs

The Henry Tax Review

The Government released final report of the Henry Review of Australia’s Future Tax System. The report is far reaching and intended to shape Australia’s tax system for the first half of the 21st Century. In this Tax Brief we examine the background to the Henry Review of Australia's Future Tax System, the key recommendations for Australian business which the Government has indicated it will adopt, the second term initiatives still under consideration, the recommendations rejected out of hand and the recommendations which have not been specifically addressed at this stage but which business might want to encourage the Government to revisit.

The Henry Tax Review (144 kb)

31 Mar 2010 | Tax Briefs

Bamford in the High Court of Australia: Short and Sweet

This Tax Brief deals with the outcome of the appeals to the High Court in the case of Commissioner of Taxation v Bamford, in which the decision of the Full Federal Court was upheld.

Bamford in the High Court of Australia: Short and Sweet (48 kb)

18 Jun 2009 | Tax Briefs

Bamford: Taxation of Trusts Clarified

In its recent decision in Bamford v Commissioner of Taxation [2009] FCAFC 66, the Full Federal Court has settled (at least at the level of the Federal Court) two issues in relation to the taxation of trusts that have been the source of debate between taxpayers and the ATO, especially in recent times when the ATO has been developing views partly at odds with the general professional understanding.

Bamford: Taxation of Trusts Clarified (48 kb)

27 May 2009 | Tax Briefs

The Meaning of Income for the Purposes of Section 97 of Income Tax Assessment Act 1936

This Tax Brief discusses the operation of trust taxing provisions, specifically the meaning of “income” where that first appears in the introductory words of section 97(1) of the Income Tax Assessment Act 1936, and to what extent the meaning of income can be affected by trust law and the trust deed.

The Meaning of Income for the Purposes of Section 97 of Income Tax Assessment Act 1936 (137 kb)

13 May 2009 | Tax Briefs

Federal Budget 2009-10

This Tax Brief provides an overview of the 2009-2010 Federal Budget.

Federal Budget 2009-10 (88 kb)

05 Feb 2009 | Tax Briefs

Investment Allowance Mk II

The Treasurer has announced an investment allowance in the form of an additional allowable deduction of a percentage of the amount spent on a tangible depreciating asset. This Tax Brief considers the features of the incentive.

Investment Allowance Mk II (30 kb)

24 Mar 2009 | Tax Briefs

Investment Allowance - Bill Enters Parliament

The Government introduced into Parliament on Thursday 19 March 2009 a Bill to enact the investment allowance. This Tax Brief updates our earlier Tax Briefs on the Investment Allowance for these new developments.

Investment Allowance - Bill Enters Parliament (40 kb)

14 Jan 2009 | Tax Briefs

Insolvency & Workouts: GST Matters (with or without personal liability)

This Tax Brief discusses the GST obligations and entitlements of Representatives within the terms of the basis provisions of the GST Act if and as modified by Division 147, following the decision in PM Developments.

Insolvency & Workouts: GST Matters (with or without personal liability) (43 kb)

12 Oct 2010 | Tax Briefs

Election 2010

This Tax Brief outlines the measures announced by the Government before and after the 2010 election.

Election 2010 (118 kb)

29 Aug 2013 | Tax Briefs

Tax Issues in the 2013 Election

This Tax Brief examines the announcements made in the election campaign so far, and what the future should hold once the election result is known.

Tax Issues in the 2013 Election (86 kb)

11 Jun 2009 | Tax Briefs

CGT Rules for Managed Investment Trusts

Treasury has released a Discussion Paper about the proposed election by Managed Investment Trusts for Capital Gains Tax to be the primary taxing code. This Tax Brief considers the release.

CGT Rules for Managed Investment Trusts (64 kb)

08 May 2012 | Tax Briefs

Australia's Budget 2012-13

The central theme of the 2012-13 Budget is the cancellation, limitation or deferral of a range of measures that were beneficial to taxpayers, as part of the political strategy of returning the Budget to surplus. Some of these changes reflect significant reversals of previous policies and could have significant impacts on the local superannuation industry and on levels of foreign investment into Australian managed funds in particular. These changes are outlined in our Tax Brief.

Australia's Budget 2012-13 (129 kb)

12 May 2010 | Tax Briefs

Budget 2010: Ten Days of Tax and More to Come

The Government has released the 2010 Budget, containing a raft of tax measures following on from the release of the Henry Review and the Johnson Report.

Budget 2010: Ten Days of Tax and More to Come (171 kb)

23 Dec 2008 | Tax Briefs

Ken Henry's "Root and Branch" Christmas Present

This Tax Brief provides an overview of the key aspects of Ken Henry's 300 page consultation paper on Australia’s future tax system released on 10 December 2008.

Ken Henry's "Root and Branch" Christmas Present (65 kb)

16 Dec 2008 | Tax Briefs

The Rise and Fall (and Rise and Fall) of the Investment Allowance

This Tax Brief considers the announcement (in December 2008) of a proposed temporary additional 10% deduction, in respect of business investment expenditure on new equipment for use in Australia.

The Rise and Fall (and Rise and Fall) of the Investment Allowance (43 kb)

08 Oct 2008 | Tax Briefs | Financial Services

More Developments in the TOFA Project

This Tax Brief considers the announcement of optional and compulsory start dates, together with proposed TOFA/consolidation interactions.

More Developments in the TOFA Project (68 kb)

07 Oct 2008 | Tax Briefs

Interim Division 6C Measures - Legislation Introduced into Parliament

In a Tax Brief in July this year we outlined measures which the Assistant Treasurer had just released proposing amendments to Division 6C of Part III of the Income Tax Assessment Act 1936 (Cth). The proposed amendments were a milestone in the ongoing consultations being conducted by Treasury on ‘interim measures’ to improve the operation of Division 6C, pending the more complete review of Division 6C being undertaken by the Board of Taxation.

Interim Division 6C Measures - Legislation Introduced into Parliament (37 kb)

07 Aug 2008 | Tax Briefs

The Henry Review's First Paper - Watch this Space

The First Paper from the Henry Review of Australia’s tax system has been released. This Tax Brief considers the few parts of the paper relevant for businesses and companies.

The Henry Review's First Paper - Watch this Space (38 kb)

13 May 2008 | Tax Briefs

2008-09 Budget

This Tax Brief outlines the 2008-09 Federal Budget measures. These include: new tax rates and income thresholds, scrip for scrip relief, debt/equity measures, final withholding tax regime for managed investment trusts, superannuation changes.

2008-09 Budget (207 kb)

04 Mar 2008 | Tax Briefs

Board of Tax Review of Managed Funds and Interim Division 6C Amendments

This Tax Brief considers the Board of Taxation's review of the taxation arrangements that apply to managed funds.

Board of Tax Review of Managed Funds and Interim Division 6C Amendments (51 kb)

27 Nov 2007 | Tax Briefs

Labor's Tax Policies - What Next for Business Tax?

This Tax Brief examines the implications for business of Labor’s 2007 tax policies, with a few details included on some of the personal and superannuation changes.

Labor's Tax Policies - What Next for Business Tax? (146 kb)

08 May 2007 | Tax Briefs

Budget 2007-08

The Government has handed down its 2007/08 Budget. The headline announcement is cuts to personal tax. This Tax Brief provides an overview of that change and the other tax announcements.

Budget 2007-08 (280 kb)

23 Apr 2013 | Tax Briefs | Real Estate

Investment Manager Regime - Element 3

This Tax Brief examines the main provisions of an n Exposure Draft of the legislation needed to enact ‘Element 3’ of the Investment Manager Regime Exposure Draft, its principal effects and some of the issues that it will raise.

Investment Manager Regime - Element 3 (265 kb)

19 Feb 2010 | Tax Briefs

New Tax Agents' Regime: Time to Act is Now!

The legislation to replace the current regulation of tax agents has passed along with separate transitional legislation in 2009. The regime gets underway on 1 March 2010. This Tax Brief explores the uncertain in its application and the potential for many corporate group service companies, funds management entities, financial advisers and others to have to register as tax agents.

New Tax Agents' Regime: Time to Act is Now! (43 kb)

01 Dec 2005 | Tax Briefs

More Amendments to Self-Assessment

This Tax Brief outlines measures proposed in a bill to give effect to Treasury’s ‘Report on Aspects of Income Tax Self-Assessment System’ (known as ROSA), most notably the introduction of nil assessments.

More Amendments to Self-Assessment (180 kb)

17 Nov 2005 | Tax Briefs

High Court Obscures Trust Taxation

This Tax Brief considers the potential relevance of the High Court Decision in CPT Custodian, a land tax case, to various trust-related income tax issues.

High Court Obscures Trust Taxation (124 kb)

04 Apr 2006 | Tax Briefs

Some Implications of the Promoter Penalties Regime

This Tax Brief provides an overview of key features of the ‘promoter penalty’ rules introduced in 2006 in response to the proliferation of so-called ‘mass-marketed tax schemes’ in the late 1990s.

Some Implications of the Promoter Penalties Regime (122 kb)

05 Apr 2004 | Tax Briefs

A Bet Each Way

This Tax Brief considers an AAT decision which held that a choice to claim a Division 123 small business replacement asset roll-over can only be made once the replacement asset has been acquired.

A Bet Each Way (250 kb)

09 May 2006 | Tax Briefs

Budget 2006

This Tax Brief discusses the headline items in the 2006 Budget.

Budget 2006 (282 kb)

07 Jun 2004 | Tax Briefs

When Profits are Derived - Sunny's Second Take

This tax brief summarises the Full Federal Court decision in Sun Alliance and the meaning of profits in a tax context. The Court concluded that in general it is unlikely that unrealised gains will be regarded as profits derived unless they are reflected in the company’s financial statements.

When Profits are Derived - Sunny's Second Take (261 kb)

11 May 2004 | Tax Briefs

2004-05 Budget Measures - Superannuation

Our special Budget Edition Tax Brief concentrates on the announced personal tax and superannuation changes in the 2004-05 Federal Budget, which will be remembered for its generosity to families; business tax measures were few.

2004-05 Budget Measures - Superannuation (136 kb)

04 May 2004 | Tax Briefs

Blackhole in the Bitumen

This Tax Brief analyses the February 2004 Federal Court decision in Transurban City Link Limited v FCT. It was held that annual concession fees payable by Transurban to the State of Victoria for a concession to establish and operate the Melbourne City Link were not allowable deductions.

Blackhole in the Bitumen (194 kb)

05 Nov 2004 | Tax Briefs

Amway: Salesman persuade Full Federal Court that they mean business

The Full Federal Court decided in Amway that the taxpayer could deduct expenditure incurred in conducting annual seminars for its commission agents. This Tax Brief analyses the Court’s reasoning.

Amway: Salesman persuade Full Federal Court that they mean business (162 kb)

06 Oct 2004 | Tax Briefs

Trust Losses Remain Idle

The Federal Court held in Idlecroft that a trust stripping scheme was caught by the reimbursement agreement provision s.100A of the ITAA36. This Tax Brief analyses the Court’s reasoning.

Trust Losses Remain Idle (189 kb)

05 Mar 2004 | Tax Briefs

The Other Side of Midnight

This tax brief provides a summary of the Full Federal Court decision in Commissioner of Taxation vs. Energy Resources of Australia Limited [2003] FCAFC 314.

The Other Side of Midnight (238 kb)

26 Feb 2004 | Tax Briefs

Entertainment Rules and Business Seminars

This tax brief provides a summary of the Federal Court decision in Amway of Australia v Commissioner of Taxation [2003] FCA 1533.

Entertainment Rules and Business Seminars (205 kb)

04 May 2012 | Tax Briefs | Financial Services

Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Consolidation Exposure Draft provisions (62 kb)

04 May 2012 | Tax Briefs

Appendix A to Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Appendix A to Consolidation Exposure Draft provisions (47 kb)

04 May 2012 | Tax Briefs

Appendix B to Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Appendix B to Consolidation Exposure Draft provisions (40 kb)

04 May 2012 | Tax Briefs

Appendix C to Consolidation Exposure Draft provisions

On 18 April 2012 the new Assistant Treasurer took his first foray into the world of tax consolidations by releasing Exposure Draft (ED) provisions dealing with the residual cost setting and right to future income rules and TOFA interaction rules.

Appendix C to Consolidation Exposure Draft provisions (123 kb)

10 May 2005 | Tax Briefs

2005 Budget – Something for Everyone

This Tax Brief considers the highlights of the 2005 Budget.

2005 Budget – Something for Everyone (246 kb)

10 May 2005 | Tax Briefs

Mind your Ps and Qs with Trusts

This Tax Brief considers the Federal Court decision in Pearson v Commissioner of Taxation. Thee judgement considers the operation of Division 6 in circumstances where the net income of a trust is increased subsequent to the conclusion of an income year.

Mind your Ps and Qs with Trusts (184 kb)

03 Mar 2005 | Tax Briefs

Stamp Duty Tail Wags CGT Dog?

This Tax Brief considers the High Court decision in Chief Commissioner of State Revenue v Dick Smith Electronics Holdings Pty Ltd involving NSW stamp duty and whether it has any implications for the interpretation of the capital gains tax provisions.

Stamp Duty Tail Wags CGT Dog? (181 kb)

21 Dec 2004 | Tax Briefs

New ATO Views on Absolute Entitlement

This Tax Brief considers the ATOS 2004 Draft Ruling outlining its interpretation of one of the pivotal concepts in the capital gains tax rules for trusts: absolute entitlement.

New ATO Views on Absolute Entitlement (236 kb)

11 Feb 2004 | Tax Briefs

Amway of Australia v Commissioner of Taxation (No 2) [2003] FCA 1533

This Tax Brief considers the Federal Court’s judgment in Amway of Australia v Commissioner of Taxation (No 2) which provided the first judicial analysis on what constitutes non-deductible entertainment under the former s.51AE of the ITAA 1936.

Amway of Australia v Commissioner of Taxation (No 2) [2003] FCA 1533 (204 kb)

11 Feb 2004 | Tax Briefs

The Deductibility of Tax Agent Fees

This Tax Brief considers the two related decisions, Bartlettv FC of T and Falcetta v FC of T 2003 ATC 4962 in which Hill J considered the operation of s.25-5 of the Income Tax Assessment Act, 1997 as it applied before 22 December 1999.

The Deductibility of Tax Agent Fees (165 kb)

11 Feb 2004 | Tax Briefs

Public Rulings deficient - No SAP? - MLC Investments Ltd v Commissioner of Taxation [2003] FCA 1487

This Tax Brief considers a recent Federal Court judgment in MLC Investments which has important ramifications for the Commissioner’s ability to define limits to his exercise of general discretions given to him by Tax Legislation. It also sheds valuable light on the Commissioner’s power to grant substituted accounting periods.

Public Rulings deficient - No SAP? - MLC Investments Ltd v Commissioner of Taxation [2003] FCA 1487 (202 kb)

16 Dec 2003 | Tax Briefs

Federal Court Confirms Loss of Interest Deduction

This Tax Brief considers the decision of the Full Federal Court in the long-running Spassked saga and the Commissioner's Press Release announcing the Tax Office's win in Australia's largest tax case. The amount of denied interest deductions exceeds $6.5 billion over 7 years.

Federal Court Confirms Loss of Interest Deduction (222 kb)

04 Aug 2003 | Tax Briefs

Is Playing Sport A Business?

This Tax Brief considers the Full Federal Court's decision in Stone in which a former Olympic athlete's appealed against a Federal Court decision that prize money she won and grants she received were assessable income.

Is Playing Sport A Business? (160 kb)

07 Jul 2003 | Tax Briefs

Commissioner of Taxation v La Rosa [2003] FCAFC 125 - Deductions for Drug Dealers

This Tax Brief considers the decision of the Full Federal Court in Commissioner of Taxation v La Rosa which dismissed the appeal by the Commissioner against the allowance of a deduction in respect of money stolen from Francesco Domenico La Rosa, a convicted drug dealer.

Commissioner of Taxation v La Rosa [2003] FCAFC 125 - Deductions for Drug Dealers (283 kb)

14 May 2003 | Tax Briefs

The Textured Issue of Beneficial Ownership

This Tax Brief considers the Full Federal Court's decision in Commissioner of Taxation v Linter Textiles Australia Ltd. Though the case provides a useful discussion of the term 'beneficial ownership', it stops short of eliminating any lingering ambiguity in the ownership of assets held by a company subject to a winding up order.

The Textured Issue of Beneficial Ownership (186 kb)

14 May 2003 | Tax Briefs

Sun Alliance Investments Pty Ltd (in liq) v. Commissioner of Taxation [2003] FCA 75

This Tax Brief considers the decision of Stone J of the Federal Court in Sun Alliance Investments wherein the Commissioner was found to have correctly made a dividend rebate adjustment to the reduced cost base of a company's shares to effect a significant reduction in the capital losses available for transfer to a subsidiary.

Sun Alliance Investments Pty Ltd (in liq) v. Commissioner of Taxation [2003] FCA 75 (222 kb)

13 May 2003 | Tax Briefs

2003-4 Federal Budget - International Tax Measures

This Tax Brief provides an overview of the key international tax measures announced in the 2003-2004 Budget.

2003-4 Federal Budget - International Tax Measures (237 kb)

23 Oct 2009 | Tax Briefs | Employment & Superannuation

Taxation of Employee Share and Option Plans - Legislation Tabled

This Tax Brief highlights some key issues from a Bill tabled in Parliament in October 2009 to enact the new regime for the taxation of employee shares and options.

Taxation of Employee Share and Option Plans - Legislation Tabled (52 kb)

03 Jul 2009 | Tax Briefs | Employment & Superannuation

Taxation of Employee Share and Option Plans - Round Three

The Assistant Treasurer, Nick Sherry, released on 1 July 2009 a policy statement regarding the final framework for the taxation of employee share schemes. This Tax Brief discusses the announcement. Legislation was subsequently introduced to repeal Division 13A of the Income Tax Assessment Act 1936 and to introduce new Division 83A.

Taxation of Employee Share and Option Plans - Round Three (33 kb)

18 Jun 2010 | Tax Briefs | Employment & Superannuation

ATO Employee Share Scheme Fact Sheets - New Division 83A - 'Real' Risk, 'Genuine' Restrictions, Market Value and Employer Reporting

The Australian Taxation Office has released a number of factsheets to help explain application of the new employee share scheme tax rules. This Tax Brief considers those releases.

ATO Employee Share Scheme Fact Sheets - New Division 83A - 'Real' Risk, 'Genuine' Restrictions, Market Value and Employer Reporting (204 kb)

18 Aug 2009 | Tax Briefs | Employment & Superannuation

Exposure Draft Employee Share Plan Legislation: Few Surprises, Not Much Joy

New tax legislation governing employee share plans has been released and will be tabled in Parliament during the current Spring sitting. This Tax Brief contemplates how the proposals will change the way employee equity is taxed.

Exposure Draft Employee Share Plan Legislation: Few Surprises, Not Much Joy (36 kb)

09 Apr 2013 | Tax Briefs | Financial Services | Employment & Superannuation

Changes to Superannuation

The Treasurer has put an end to the frenzied pre-Budget speculation by announcing the government’s plans for changing superannuation. This Tax Brief examines the seven measures announced by the Treasurer and the likely effects of the proposals.

Changes to Superannuation (187 kb)

26 Apr 2013 | Tax Briefs | Corporate and Mergers & Acquisitions | Projects & Infrastructure

Tax Losses from Infrastructure Projects

This Tax Brief discusses draft legislation explanatory memorandum and rules that will be implemented as a legislative instrument recently released concerning the special treatment of tax losses of infrastructure projects.

Tax Losses from Infrastructure Projects (119 kb)

13 Jul 2011 | Tax Briefs | International

Treaties and Transfer Pricing: Full Federal Court Changes Tack

The decision of the Full Federal court in SNF Australia [2011] FCAFC 74 has provided some welcome clarification of the interpretation of tax treaties and the operation of the transfer pricing law, though it has left some further uncertainties in its train. This tax brief explores the decision and its ramifications.

Treaties and Transfer Pricing: Full Federal Court Changes Tack (68 kb)

28 Mar 2011 | Tax Briefs

CFC and FAF Draft Legislation: The Long and Winding Road

This Tax Brief considers the redrafting Australia’s foreign income anti-deferral regimes contained in recently released draft legislation on controlled foreign companies and foreign accumulation funds.

CFC and FAF Draft Legislation: The Long and Winding Road (114 kb)

24 Mar 2014 | Tax Briefs | International

OECD Recommendations on Cross Border Hybrids

Another piece of the ‘base erosion’ puzzle has appeared with the release of the OECD’s recommendations for addressing cross-border hybrids. This Tax Brief analyses the 2 OECD Public Discussion Drafts on ‘neutralising the effects of hybrid mismatch arrangements’ and their implications, both for Australia’s future treaty practice and for some common cross-border structures and instruments. I

OECD Recommendations on Cross Border Hybrids (316 kb)

18 Oct 2013 | Tax Briefs | International

Country-by-Country Reporting

This Tax Brief examines a Memorandum by the OECD in October on transfer pricing documentation and the development of a common template for country-by-country reporting and its implications.

Country-by-Country Reporting (111 kb)

01 Aug 2012 | Tax Briefs | International

Messenger Press - the foreign exchange gain/loss saga continues

This Tax Brief discusses the Federal Court decision in Messenger Press Proprietary Limited v FCT which considered the former foreign exchange rules in Division 3B of the ITAA 1936.

Messenger Press - the foreign exchange gain/loss saga continues (117 kb)

20 Feb 2013 | Tax Briefs | International

Transfer Pricing Bill

This Tax Brief describes the transfer pricing provision of the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill mainly focusing on changes from the Exposure Draft (ED) and the related international events.

Transfer Pricing Bill (113 kb)

17 Dec 2012 | Tax Briefs | International

Transfer Pricing Developments

As 2012 draws to an end,this Tax Brief addresses the latest developments in transfer pricing which continues to be an area of development and surprises.

Transfer Pricing Developments (128 kb)

26 Jul 2013 | Tax Briefs | International

BEPS Action Plan and More

This Tax Brief considers the outcome of the G20 Finance Ministers and Central Bank Governors meeting last week as it concerns the OECD Action Plan on Base Erosion and Profit Shifting (BEPS)

BEPS Action Plan and More (287 kb)

18 Jun 2013 | Tax Briefs | Financial Services | Employment & Superannuation

Your Superannuation Contributions – The Current State of Play

This Tax Brief outlines some of the issues associated with individuals making additional contributions to their complying super fund – notably, contributions tax and excess contributions tax.

Your Superannuation Contributions – The Current State of Play (188 kb)

13 May 2013 | Tax Briefs | International

Base Erosion and Profit Shifting: More Talk But Is Action Just Around the Corner?

This Tax Brief outlines the possible impacts of Treasury's Issues Paper entitled “Implications of the Modern Economy for the Taxation of Multinational Enterprises".

Base Erosion and Profit Shifting: More Talk But Is Action Just Around the Corner? (200 kb)

10 May 2013 | Tax Briefs | International

Treaty benefits and taxation of partners in limited partnerships holding shares in Australian companies

This Tax Brief contemplates the recent decision of Edmonds J of the Federal Court of Australia in Resources Capital Fund III which throws the known ATO views into doubt, deals with the vexed issue of treaty benefits in cases involving foreign limited partnerships and clarifies the principles for interpretation of tax treaties.

Treaty benefits and taxation of partners in limited partnerships holding shares in Australian companies (276 kb)

16 Apr 2013 | Tax Briefs | Private Wealth

ATO Disclosure of Taxpayer Information

This Tax Brief explains the proposals to amend the law to allow disclosure of information about the tax affairs of large taxpayers, who will be affected and how the measures are likely to work.

ATO Disclosure of Taxpayer Information (199 kb)

22 Nov 2011 | Tax Briefs | Projects & Infrastructure

Losses from Infrastructure Projects

The Government has released a Discussion Paper outlining the design of new rules to govern the treatment of losses arising from infrastructure projects considered to be of national significance. This Tax Brief examines the current plans for how these rules will operate.

Losses from Infrastructure Projects (131 kb)

19 Dec 2011 | Tax Briefs | International

Transfer Pricing Consultation Paper

This Tax Brief discusses what the proposed retrospective amendments to the law to support the Australian Taxation Office view that tax treaties provide a separate power to make transfer adjustments may mean and comments on the recent Transfer Pricing Consultation Paper.

Transfer Pricing Consultation Paper (134 kb)

21 Oct 2014 | Tax Briefs | Corporate and Mergers & Acquisitions | Employment & Superannuation

Employee share and options changes

The Government confirmed in its 14 October 2014 Industry Innovation and Competitiveness Agenda announcement that it will roll-back at least part of the 2009 changes to the taxation of employee share and option plans, with start-up companies to be the major beneficiaries.

Employee share and options changes (40 kb)

22 Feb 2008 | Tax Briefs | GST

Brady King First ever GST margin sheme valuation case.pdf

On 18 February 2008, the Federal Court of Australia released the decision of Brady King Pty Ltd v Commissioner of Taxation [2008] FCA 81 relating to a taxpayer’s entitlement to adopt the “valuation method” under the margin scheme. This Tax Brief considers the importance of this case in particular, its relevance to property developers as it concerns the margin scheme provisions.

Brady King First ever GST margin sheme valuation case.pdf (180 kb)

17 Apr 2012 | Tax Briefs | International

International Tax Developments

This Tax Brief examines two significant developments in international tax: the creation of ‘investment manager regime’ and amendments to Australia’s transfer pricing law.

International Tax Developments (92 kb)

05 Apr 2011 | Tax Briefs | International

Implementing and Interpreting Australia's Tax Treaties

There have been some recent developments of general interest in relation to the implementation and interpretation of Australia’s tax treaties. This tax brief provides an outline of the developments and of the flow-on effects in relation to Managed Investment Trust (MIT) withholding tax.

Implementing and Interpreting Australia's Tax Treaties (58 kb)

10 Nov 2010 | Tax Briefs | Real Estate

Further Developments in the Taxation of MITs

The Assistant Treasurer released a Discussion Paper on proposed changes to the taxation of managed investment trusts (MITs), which in many important places is vague and indecisive. This Tax Brief explains the new measures and how the Paper proposes they will operate.

Further Developments in the Taxation of MITs (85 kb)

01 Nov 2010 | Tax Briefs | Employment & Superannuation

Loss Transfer Regime for Merging Superannuation Funds

This Tax Brief examines some of the traps and pitfalls of the new loss transfer regime for merging superannuation funds which became law on 24 March 2010.

Loss Transfer Regime for Merging Superannuation Funds (63 kb)

29 Jul 2010 | Tax Briefs | International

Further Developments in the Reform of Australia's International Tax Rules

This Tax Brief discusses the current state of play (July 2010) of the reform of Australian international tax laws as a result of a comprehensive review initiated in 2006. The brief discusses the repeal of the FIF rules, exposure draft legislation for an anti-roll-up fund regime and the consultation paper released by Treasury in July 2010.

Further Developments in the Reform of Australia's International Tax Rules (109 kb)

05 Jul 2010 | Tax Briefs | Real Estate

New Definition of Managed Investment Trust

The definition of a “managed investment trust” was significantly amended in 2010. The definition is relevant for the application of the MIT withholding and elective CGT regimes. This Tax Brief examines the new definition and how it has changed the range of trusts that are eligible to access the MIT withholding tax and CGT election concessions.

New Definition of Managed Investment Trust (79 kb)

10 May 2010 | Tax Briefs | Real Estate

New Managed Investment Trust Regime

This Tax Brief examines the Board of Taxation Report into the taxation of Managed Investments Trusts released on 7 May 2010, the Government’s responses and the next steps on the path to implement these important proposals.

New Managed Investment Trust Regime (76 kb)

30 Apr 2010 | Tax Briefs | Financial Services

TOFA - Refinements to the Puzzle

On 20 April 2010, the Assistant Treasurer released a number of proposed refinements to the TOFA puzzle, contained in an exposure draft and accompanying draft explanatory memorandum. This Tax Brief considers whether all the pieces of the TOFA puzzle fit together.

TOFA - Refinements to the Puzzle (45 kb)

23 Mar 2010 | Tax Briefs | GST

Indirect Tax Sharing Agreements

From 1 July 2010, indirect tax sharing agreements (ITSAs) will become part of the GST landscape. Under the proposed measures, GST group members and participants in an approved GST joint venture can limit their indirect tax liability by entering into an ITSA with the representative member / joint venture operator similar to the effect that tax sharing agreements (TSAs) have for consolidated groups under Division 721 of the Income Tax Assessment Act 1997.

Indirect Tax Sharing Agreements (38 kb)

19 Mar 2010 | Tax Briefs | Corporate and Mergers & Acquisitions

Consolidating Consolidation

This Tax Brief outlines the main changes to the consolidation provisions introduced by the Tax Laws Amendment (2010 Measures No.1) Bill 2010 – the changes primarily affect the tax cost setting process when a group is formed, or entities join or leave a group.

Consolidating Consolidation (50 kb)

05 Mar 2010 | Tax Briefs | Real Estate

CGT Treatment for MITs - New Draft Legislation

The Tax Laws Amendment (2010 Measures No 1) Bill 2010 contains the proposed final form of the measures that permit eligible managed investment trusts to elect to apply the capital gains tax regime as the primary measure for taxing gains and losses on assets. This Tax Brief examines the changes from the Exposure Draft of these provisions.

CGT Treatment for MITs - New Draft Legislation (70 kb)

15 Jan 2010 | Tax Briefs | International

CFC Review

Treasury issued a consultation paper directed at the high-level design of the new controlled foreign company (CFC) rules. This Tax Brief sets out the design principles that will make up the new CFC rules and replacement for the current s23AJ.

CFC Review (490 kb)

23 Dec 2009 | Tax Briefs | Private Equity

ATO Christmas Present for Private Equity

On 16 December 2009 the ATO released two draft tax rulings on the main issues arising in its notorious recent court action involving the private equity group, TPG. The rulings effectively leave the revenue capital treatment and treaty shopping issues to case by case treatment, though making clear the ATO view of the TPG situation.

ATO Christmas Present for Private Equity (135 kb)

23 Dec 2009 | Tax Briefs | International

Transfer Pricing and Thin Capitalisation

The ATO has replaced its 2007 draft determination on the relationship of the thin capitalisation and transfer pricing rules with a draft ruling, and the release of a draft practice statment and two opinions it has obtained from counsel on the technical issues. This Tax Brief contemplates the ATO's current position.

Transfer Pricing and Thin Capitalisation (172 kb)

17 Dec 2009 | Tax Briefs | Real Estate

CGT Treatment for MITs - Draft Legislation

This Tax Brief considers the 2009 Exposure Draft legislation for the application of capital gains tax to managed investment trusts.

CGT Treatment for MITs - Draft Legislation (60 kb)

08 Dec 2009 | Tax Briefs | International

Sovereign Wealth Funds

The tax treatment of sovereign wealth funds (SWFs) in domestic and international tax law has recently been occupying the minds of tax officials in Australia and overseas. This Tax Brief examines recent proposals discussing the tax treatment of SWFs, proposals that will affect both the Australian tax position of SWFs themselves, and the Australian tax position of the entities into which they invest.

Sovereign Wealth Funds (53 kb)

27 Nov 2009 | Tax Briefs | International

Novelties in New Zealand Treaty

This Tax Brief sets out the novelties and main features of the new Australia/New Zealand double tax treaty

Novelties in New Zealand Treaty (47 kb)

19 Nov 2009 | Tax Briefs | Financial Services

TOFA - First Election Deadline Looming!

This Tax Brief outlines the availability and consequences of elections to apply TOFA early or to pre-existing transactions.This Tax Brief is a guide to these transition-to-TOFA elections.

TOFA - First Election Deadline Looming! (150 kb)

06 Nov 2009 | Tax Briefs | Corporate and Mergers & Acquisitions

Accessing Corporate Losses

Treasury has released an Exposure Draft of legislation to facilitate access to corporate losses for companies with multiple classes of shares on issue. This Tax Brief examines the strengths and weaknesses of the proposed regime and identifies some issues with the way it is designed to work.

Accessing Corporate Losses (36 kb)

04 Sep 2009 | Tax Briefs | Financial Services

TOFA for Managed Funds

This Tax Brief considers the issues that the TOFA regime will present for managed funds such as domestic and international cash and bond funds, share funds and property trusts.

TOFA for Managed Funds (57 kb)

27 Aug 2009 | Tax Briefs | Employment & Superannuation

Proposed Loss Transfer Regime for Superannuation Funds

In December 2008, the Government announced a temporary tax measure to assist in the consolidation of superannuation funds, the goal being to allow the industry to merge into fewer, more efficient, larger and presumably more stable funds, by removing some of the tax impediments to consolidation. The announcement proposed an optional loss transfer system for any net capital losses that resulted from the CGT events that would be triggered by the merger of funds. This Tax Brief examines the refinements to that proposal culminating with the release by Treasury of Exposure Draft legislation.

Proposed Loss Transfer Regime for Superannuation Funds (34 kb)

04 Aug 2009 | Tax Briefs | International

Reforming the Taxation of Offshore Income

A number of reports, papers and recommendations for changing the anti-tax deferral regime, and the taxation of non-portfolio dividends from foreign companies, were released by Treasury and the Board of Taxation in the period 2007 to 2009. This Tax Brief sets out the key recommendations from those documents, and summarises the position on the reform of Australia’s international taxation laws.

Reforming the Taxation of Offshore Income (72 kb)

05 Jun 2009 | Tax Briefs | Financial Services

Deductibility of Interest on Subordinated Debt

In an earlier Tax Brief [available at http://www.gf.com.au/477_634.htm ] we reported on a case denying St George Bank a deduction for interest paid on a subordinated loan issue. The Full Federal Court recently heard the taxpayer’s appeal in this case and unanimously confirmed that the interest expense was not deductible. In this Tax Brief we review the Court’s reasoning and the ongoing significance of this case.

Deductibility of Interest on Subordinated Debt (35 kb)

29 May 2009 | Tax Briefs | Employment & Superannuation

Shares & Option Plans Still on Hold

Changes to the rules governing the treatment of new grants of shares and options to Australian employees have been stalled by proposed tax changes announced within the Budget. This Tax Brief contemplates the issues and opportunities this presents.

Shares & Option Plans Still on Hold (35 kb)

19 May 2009 | Tax Briefs | Corporate and Mergers & Acquisitions

The Impact of TOFA on M&A Activity

This tax brief explores the impact of TOFA on a number of corporate transactions, including mergers, acquisitions, disposals, restructures, demergers and capital management (capital raisings, buy-backs, etc).

The Impact of TOFA on M&A Activity (70 kb)

15 May 2009 | Tax Briefs | Financial Services

In-house Finance Companies

The ATO has long been concerned about the tax issues arising from in-house finance companies operating within large listed groups. This Tax Brief considers the substantive issue of whether an in-house finance company is entitled to a deduction for the loss crystallised on writing off as a bad debt the principal and accrued but unpaid interests on loans made to other entities in the same group is addressed in light of the Federal Court’s decision in the BHP Billiton case.

In-house Finance Companies (42 kb)

28 Apr 2009 | Tax Briefs | Corporate and Mergers & Acquisitions

Tax Consolidation Amendments - 18 Further Pieces of the Jigsaw Released

On 28 April 2009 the Assistant Treasurer released proposed amendments dealing with 18 tax consolidation issues which had been announced as far back as 1 December 2005. This Tax Brief and the attached table lists each of the proposed amendments and outlines their specific scope and application.

Tax Consolidation Amendments - 18 Further Pieces of the Jigsaw Released (18 kb)

09 Apr 2009 | Tax Briefs | Financial Services

Debt for Equity Swaps

It may be possible to find a silver lining in the cloud of economic woes being experienced by many struggling businesses unable to meet their interest and principal obligations. One option that may be open to a debtor is to recapitalise the business by entering into a debt for equity swap arrangement. This Tax Brief considers some of the tax outcomes for creditors and debtors arising from a debt for equity swap.

Debt for Equity Swaps (44 kb)

26 Mar 2009 | Tax Briefs | Energy & Resources | GST

Tax Issues Arising from the CPRS

The Government released exposure draft legislation for its proposed Carbon Pollution Reduction Scheme (CPRS). This Tax Brief sets out the main tax issues that businesses will need to grasp arising from a CPRS.

Tax Issues Arising from the CPRS (46 kb)

09 Feb 2009 | Tax Briefs | Financial Services

TOFA: What you Need to Consider Now

A Bill containing the final stages of the taxation of financial arrangements (TOFA) reform project, was introduced into the House of Representatives on 4 December 2008. This Tax Brief provides an overview of the elections available within the regime.

TOFA: What you Need to Consider Now (53 kb)

29 Jan 2009 | Tax Briefs | Financial Services | Real Estate

TOFA for the Property Sector

After much delay, the regime for taxing financial arrangements (‘TOFA’) now seems likely to be passed early this year. TOFA can affect both the investments made in the property sector and the financing of those investments, but just how – and how much – activity in the property sector will be affected is neither obvious nor straightforward. This Tax Brief examines some of the issues that the TOFA regime will present for the property industry.

TOFA for the Property Sector (60 kb)

05 Dec 2008 | Tax Briefs | Financial Services

TOFA Stages 3 and 4 - the Marathon Enters Final Phase

A TOFA Bill was introduced into the House of Representatives on 4 December 2008. This Tax Brief provides a high level summary of the key features of the Bill and an overview of the important changes that have been made to the TOFA proposals since the release of the ED.

TOFA Stages 3 and 4 - the Marathon Enters Final Phase (74 kb)

04 Nov 2008 | Tax Briefs | Real Estate

Review of Managed Investment Trusts: Round 1

In this Tax Brief we consider the Division 6C changes contained in Tax Laws Amendment (2008 Measures No 5) Bill 2008, introducing the ‘2% safe harbour’ and the ‘25% safe harbour’. This bill follows the release of exposure draft legislation in July 2008.

Review of Managed Investment Trusts: Round 1 (75 kb)

28 Oct 2008 | Tax Briefs | International

Debt and Interest for Domestic and Tax Treaty Purposes

A Federal Court decision addresses the difficult intersection between Australia’s debt-equity classification rules and the characterisation of income flows for the purposes of tax treaties. This Tax Brief considers the finding of the Court that the taxpayer, a non-resident financial institution, was liable to Australian withholding tax on amounts paid to it.

Debt and Interest for Domestic and Tax Treaty Purposes (40 kb)

21 Oct 2008 | Tax Briefs | International

Capital Gains and Tax Treaties

This Tax Brief considers the implications of the Federal Court's decision in Virgin Holdings SA concerning the liability for tax of a non-resident shareholder on the profit made from the sale of shares in its Australian subsidiary.

Capital Gains and Tax Treaties (45 kb)

14 Aug 2008 | Tax Briefs | Financial Services

TOFA's Long March Continues

The TOFA journey took an important step with the announcement of optional and compulsory start dates, together with proposed TOFA/consolidation interactions. This Tax Brief examines these two recent developments.

TOFA's Long March Continues (43 kb)

24 Jul 2008 | Tax Briefs | Real Estate

Proposed Amendments for Managed Investment Funds

The Government has released draft proposed amendments to Division 6C. This Tax Brief examines the scope and operation of the draft amendments.

Proposed Amendments for Managed Investment Funds (54 kb)

10 Jul 2008 | Tax Briefs | Corporate and Mergers & Acquisitions

New Rules on Taxation on Rights Issues

This Tax Brief examines the new rules proposed by the Government to try to clarify the post-McNeil situation.

New Rules on Taxation on Rights Issues (53 kb)

30 May 2008 | Tax Briefs | International

More from the Board of Taxation on Foreign Source Income Anti-Tax-Deferral Regimes

The Board of Taxation has released five Issues Papers to give more details on proposals in relation to the reform of the CFC and FIF regimes. This Tax Brief outlines what these proposals might mean in practice.

More from the Board of Taxation on Foreign Source Income Anti-Tax-Deferral Regimes (67 kb)

26 May 2008 | Tax Briefs | GST

First High Court GST Case - Forfeited Deposits Taxable but Little Broader Guidance

The first GST case that has been decided by the High Court of Australia. In Commissioner of Taxation v Reliance Carpet Co Pty Limited, the Court found for the Commissioner that GST was payable where a deposit held by a vendor for the sale of commercial property was forfeited.

First High Court GST Case - Forfeited Deposits Taxable but Little Broader Guidance (31 kb)

22 May 2008 | Tax Briefs | Real Estate

Final Withholding for Managed Investment Trust Distributions

This Tax Brief discusses the 2008 Exposure Draft to change the regime for taxing distributions to foreign residents who invest in Managed Investment Trusts.

Final Withholding for Managed Investment Trust Distributions (53 kb)

28 Apr 2008 | Tax Briefs | Private Wealth

The ATO's Approach to Administering the Promoter Penalty Regime

This Tax Brief examines the two Practice Statements (PS LA 2008/7 and PS LA 2008/8) issued by the ATO in relation to administering the promoter penalty regime.

The ATO's Approach to Administering the Promoter Penalty Regime (50 kb)

21 Apr 2008 | Tax Briefs | Financial Services

Deductibility of Interest on Subordinated Debt

In the decision of St George Bank v FCT the Federal Court considered the deductibility of interest on subordinated debt and the validity of an election to un-grandfather the debt to bring the debt into the debt-equity rules. This Tax Brief summarises the judgement and considers the implications of the decision.

Deductibility of Interest on Subordinated Debt (61 kb)

10 Apr 2008 | Tax Briefs | International

Transfer Pricing Emerges from the Shadows

Over the last 15 years there has been a noticeable discrepancy between word and deed when it comes to direction on transfer pricing. This Tax Brief considers the AAT's decision in Roche Products, the first Australian case considering transfer pricing delivered in 45 years.

Transfer Pricing Emerges from the Shadows (59 kb)

18 Mar 2008 | Tax Briefs | International

Board of Taxation Issues Position Paper on Foreign Source Income

The Assistant Treasurer released the Board of Taxation’s Position Paper on the Review of Foreign Source Income Anti-Tax-Deferral Regimes. This Tax Brief provides details of the proposals set out in the Paper.

Board of Taxation Issues Position Paper on Foreign Source Income (71 kb)

25 Oct 2007 | Tax Briefs | Corporate and Mergers & Acquisitions

Draft Ruling on the Taxation of Earn out Arrangements

On 17 October 2007, the ATO released a Draft Taxation Ruling on the tax treatment of “earn out arrangements” This Tax Brief contemplates how this new view alters the previous analusis and deals with reverse earn outs.

Draft Ruling on the Taxation of Earn out Arrangements (105 kb)

18 Oct 2007 | Tax Briefs | Corporate and Mergers & Acquisitions

Proposed Changes to the Interaction of Tax Consolidation and Rollovers

This Tax Brief discusses Press Releases on 12 and 16 October 2007 announcing proposed changes to the interaction between the tax consolidation and CGT rollover rules.

Proposed Changes to the Interaction of Tax Consolidation and Rollovers (105 kb)

26 Sep 2007 | Tax Briefs | Financial Services

Real Progress in the TOFA Project

This Tax Brief considers the principal changes in the September 2007 Bill to enact the general taxation of financial arrangements (TOFA) regime, compared to the January 2007 exposure draft.

Real Progress in the TOFA Project (185 kb)

06 Sep 2007 | Tax Briefs | Real Estate

Tax Changes for Australian Property Trusts and Stapled Entities

This Tax Brief provides an overview of certain aspects of the Tax Laws Amendment (2007 Measures No. 5) Bill 2007 which contains two sets of measures that affect stapled entities and trusts – one that helps stapled groups to restructure without triggering adverse tax outcomes, and a second designed to permit Australian trusts to expand offshore.

Tax Changes for Australian Property Trusts and Stapled Entities (90 kb)

23 Aug 2007 | Tax Briefs | Real Estate | Projects & Infrastructure

New Tax Measures for Property and Infrastructure Projects

This Tax Brief discusses a bill introduced into Parliament by the Government on 16 August 2007, that enacts the tax exempt lessee rulse in Division 250.

New Tax Measures for Property and Infrastructure Projects (134 kb)

12 Jul 2007 | Tax Briefs | International

Further International Tax Reforms

The Government announced in May 2005 that it would remove the rules which limit the utilisation of foreign losses and which require the allocation of foreign tax credits against separate classes of income. This Tax Brief considers the Bill introduced to give effect to the announcement.

Further International Tax Reforms (118 kb)

26 Jun 2007 | Tax Briefs | Corporate and Mergers & Acquisitions

Rights Issues

This Tax Brief considers the 26 June 2007 announcement by the Assistant Treasurer that the Government will amend the tax legislation to ensure that the value of rights issues is not subject to tax at the time of issue. This reverses the outcome of the High Court decision in McNeil's case.

Rights Issues (208 kb)

21 Jun 2007 | Tax Briefs | International

Yet Another - and Needed - Review of the Foreign Source Income Anti-Tax-Deferral Regimes

This Tax Brief discusses the options raised by the Board of Taxation in June 2007 for reforming the Australian accruals/ anti-tax deferral regimes.

Yet Another - and Needed - Review of the Foreign Source Income Anti-Tax-Deferral Regimes (181 kb)

07 Jun 2007 | Tax Briefs | Financial Services

Further TOFA Developments

This Tax Brief outlines the effects of two Treasury releases outlining further elements of the TOFA jigsaw puzzle covering details of interactions and proposed measures to address synthetic financial arrangements.

Further TOFA Developments (122 kb)

29 May 2007 | Tax Briefs | International

New International Tax Measures

A number of important international tax changes were made by the Tax Laws Amendment (2007 Measures No.3) Bill 2007 in the areas of s.128F, MIT withholding, conduit foreign income and thin capitalisation.

New International Tax Measures (264 kb)

24 Jan 2007 | Tax Briefs | Financial Services

The Revised TOFA Regime

The Assistant Treasurer has released a second Exposure Draft of legislation for the taxation of financial arrangements. The new version fills in some of the gaps evident in the last version and changes some of the policy and legislative detail.

The Revised TOFA Regime (410 kb)

04 Jan 2007 | Tax Briefs | Financial Services

Revised Financial Arrangements Tax Measures Released

This Tax Brief gives an overview of the key changes in the 2007 ED – we will be circulating a more considered Tax Brief later which examines the 2007 ED in detail.

Revised Financial Arrangements Tax Measures Released (110 kb)

14 Dec 2006 | Tax Briefs | International

CGT Exemption for Non-residents Finally Law

The extensive changes (mostly concessional) to Australian capital gains tax (“CGT”) for non-residents first announced in the 2005-06 Budget, are now law. This Tax Brief considers the troubled passage through the Parliament and the implications it will have for non-residents.

CGT Exemption for Non-residents Finally Law (85 kb)

04 Oct 2006 | Tax Briefs | Projects & Infrastructure

High Court Confirms Deductibility of Concession Fees - FCT v CityLink Melbourne Limited (Transurban)

In FCT v CityLink Melbourne Ltd the High Court held that annual concession fees payable by CityLink to the State government are deductible as they accrue. Greenwoods & Freehills and Freehills acted for CityLink Melbourne Limited in relation to the Melbourne City Link project and this litigation. This Tax Brief outlines some of the case's key conclusions.

High Court Confirms Deductibility of Concession Fees - FCT v CityLink Melbourne Limited (Transurban) (216 kb)

07 Jul 2006 | Tax Briefs | International

Some Implications of the Latest International Tax Reforms

This Tax Brief discusses legislation introduced to limit the application of CGT to non-residents’ taxable Australian property, in order to bring Australia’s CGT rules into line with international standards.

Some Implications of the Latest International Tax Reforms (232 kb)

09 Jun 2006 | Tax Briefs | Corporate and Mergers & Acquisitions

Share Capital Tainting Rules

After the share capital tainting rules were rendered inactive in 2002, the Government moved to reinstate these rules from 26 May 2006. This Tax Brief considers what constitutes share capital tainting and its tax consequences.

Share Capital Tainting Rules (135 kb)

04 May 2006 | Tax Briefs | Corporate and Mergers & Acquisitions

Redefining Cost and Cost Base

his Tax Brief examines the new definitions of cost and cost base, which form a package with the enhanced blackhole provisions.

Redefining Cost and Cost Base (108 kb)

16 Dec 2005 | Tax Briefs | Corporate and Mergers & Acquisitions

Consolidation Transitional Elections About to Expire - Again!!!

This Tax Brief outlines a number of concessional transitional consolidation elections and the extension of the period within which they can be made or revoked.

Consolidation Transitional Elections About to Expire - Again!!! (182 kb)

13 Oct 2005 | Tax Briefs | GST

GST & Property Update

This tax brief provides an update on cases, legislative change and new or revised rulings in the GST and property context between March and October 2005

GST & Property Update (207 kb)

23 Sep 2005 | Tax Briefs | Financial Services

Further Comments on the Macquarie Finance Case

This tax brief provides further comments on the Full Federal Court decision in Macquarie Finance v FCT [2005] FCAFC 205

Further Comments on the Macquarie Finance Case (188 kb)

16 Sep 2005 | Tax Briefs | Financial Services

Macquarie Finance Limited v Commissioner of Taxation [2005] FCAFC 205

This tax brief provides initial comments on the Full Federal Court decision in Macquarie Finance v FCT [2005] FCAFC 205

Macquarie Finance Limited v Commissioner of Taxation [2005] FCAFC 205 (140 kb)

07 Sep 2005 | Tax Briefs | Corporate and Mergers & Acquisitions

Selling a buy-back

This tax brief provides comments on the decision of the Full Federal Court in Commissioner of Taxation v McNeil [2005] FCAFC 147

Selling a buy-back (248 kb)

01 Aug 2005 | Tax Briefs | GST

No recovery of input tax credits for trust

This Tax Brief considers the Full Federal Court decision in HP Mercantile Pty Ltd v Commissioner of Taxation regarding the core GST concept of whether an acquisition is made for a “creditable purpose” such that the taxpayer is entitled to claim an input tax credit.

No recovery of input tax credits for trust (124 kb)

20 Jul 2005 | Tax Briefs | International

New International Tax Arrangements - Update and Draft Conduit Measures (NITA 5)

This Tax Brief provides an update on previous Acts implementing the New International Tax Arrangements and conduit foreign income measures.

New International Tax Arrangements - Update and Draft Conduit Measures (NITA 5) (218 kb)

01 Jul 2005 | Tax Briefs | Private Wealth

Legislation to Amend the Self Assessment System

This Tax Brief outlines the provisions of three instalments of legislation to give effect to Treasury’s report to the Government in December 2004 and January 2005 on aspects of the self-assessment system.

Legislation to Amend the Self Assessment System (190 kb)

30 Jun 2005 | Tax Briefs | Private Wealth

Commissioner One, Taxpayer Nil

This Tax Brief discusses the Federal Court decision in Commissioner of Taxation v BCD Technologies Pty Ltd about whether a company tax return lodged with no tax payable was an “assessment”.

Commissioner One, Taxpayer Nil (107 kb)

01 Jun 2005 | Tax Briefs | Corporate and Mergers & Acquisitions

Losses Due to Lack of Control

This Tax Brief considers the 26 April 2005 decision of the High Court in Linter Textiles Australia. The case establishes that where a corporate group is liquidated the persons who hold shares in the parent company will not be treated as satisfying continuity of ownership in relation to the subsidiaries.

Losses Due to Lack of Control (222 kb)

10 May 2005 | Tax Briefs | Financial Services | International

Further Changes to Foreign Exchange Rules

This Tax Brief looks at recently release regulations designed to facilitate translating foreign currency into either Australian dollars or into a taxpayer’s functional currency by permitting taxpayers to adopt exchange rates and computational methods which are not strictly in accordance with the dictates of the legislation.

Further Changes to Foreign Exchange Rules (122 kb)

09 May 2005 | Tax Briefs | International

New International Tax Arrangements Instalment 4

This Tax Brief considers the fourth instalment of the international reforms introduced into Parliament in March 2005: The New International Tax Arrangements (Foreign-owned Branches and Other Measures) Bill 2005.

New International Tax Arrangements Instalment 4 (190 kb)

05 May 2005 | Tax Briefs | GST

Taxman in the Middle of Packer/Stokes GST Standoff

This Tax Brief considers the Full Federal Court’s decision in ACP Publishing Pty Ltd v FCT [2004] FCA 874 that a pre-8 July 1999 deed was GST-free under the GST grandfathering rules even though the price was determined after 1 July 2000.

Taxman in the Middle of Packer/Stokes GST Standoff (198 kb)

01 Apr 2005 | Tax Briefs | International

Withholding Tax on Interest Paid to US and UK Financial Institutions – Ruling Finalised

This Tax Brief considers Taxation Ruling 2005/5 in which the Australian Taxation Office expressed its view on the Tax Treaty withholding tax exemptions for interest paid by Australian residents to US and UK banks and financial institutions.

Withholding Tax on Interest Paid to US and UK Financial Institutions – Ruling Finalised (175 kb)

23 Mar 2005 | Tax Briefs | International

New International Tax Arrangements No 3 - Now Law

This Tax Brief outlines the amendments to the law to provide capital gains tax exemptions for foreign resident investors in certain Australian resident managed funds, to provide an exclusion from CGT cost base reductions for certain payments received by foreign resident investors from Australian resident managed funds and to extend the section 128F withholding tax exemption from debenture interests to debt interests.

New International Tax Arrangements No 3 - Now Law (218 kb)

18 Mar 2005 | Tax Briefs | GST

New GST Bill Targeting The Property Industry May Injure Innocent Bystanders

This Tax Brief amendments to the GST margin scheme rules for property under a GST-free transaction as well as the interaction with the margin scheme of the GST grouping and GST joint venture arrangement rules.

New GST Bill Targeting The Property Industry May Injure Innocent Bystanders (174 kb)

04 Feb 2005 | Tax Briefs | Private Wealth

Capital Gains Everywhere in Settlement of Actions

This Tax Brief considers the AAT decision in G Cassegrain & Co Pty Ltd v Commissioner of Taxation which held that a settlement payment made to the taxpayer, a family company, was assessable as a capital gain.

Capital Gains Everywhere in Settlement of Actions (209 kb)

29 Jan 2005 | Tax Briefs | GST

Recovering Input Tax Under the GST Act

This Tax Brief discusses the Recoveries Trust v Commissioner of Taxation decision which examines one of the key concepts in the GST legislation, namely that of whether an acquisition is made for a “creditable purpose” pursuant to section 11-15 such that an input tax credit can be claimed.

Recovering Input Tax Under the GST Act (135 kb)

11 Jan 2005 | Tax Briefs | Private Wealth

ATO Access to Board Papers on Tax Compliance Risk

This Tax Brief contemplates an ATO Practice Statement (Practice Statement) setting out its access policy for company board papers relating to taxation risk.

ATO Access to Board Papers on Tax Compliance Risk (173 kb)

13 Jan 2005 | Tax Briefs | Private Wealth

The Review of Self-Assessment - Amendments, Penalties and Interest

This is the last of our Tax Briefs on Treasury’s report to the Government on aspects of the self assessment system released on 16 December 2004. In this Tax Brief we focus on the recommendations dealing with changes to the powers to re-assess tax liabilities, and with proposed changes to the rules concerning the imposition and remission of penalties and interest.

The Review of Self-Assessment - Amendments, Penalties and Interest (184 kb)

06 Jan 2005 | Tax Briefs | Private Wealth

The Review of Self-Assessment - Overview

Treasury’s report to the Government on aspects of the self assessment system, and the Government’s response to the Report, accepting all of the recommendations was released in January 2005. This Tax Brief is the first of three focussing on the recommendations of the Report.

The Review of Self-Assessment - Overview (163 kb)

06 Jan 2005 | Tax Briefs | GST

No room at the Inn

This Tax Brief considers the decision of the Full Federal Court in Marana Holdings Pty Ltd v Commissioner of Taxation. The decision provides guidance on the definition of ‘residential premises’ and ‘commercial residential premises’ for the purposes of the GST Act.

No room at the Inn (202 kb)

15 Dec 2004 | Tax Briefs | Corporate and Mergers & Acquisitions

Tax Consolidation: Transitional Elections to be Finalised by 31 December 2004 - More Changes Introduced

This Tax Brief considers the announcement of 20 September 2004 that a further extension until would be allowed for making certain elections n the tax consolidation rules.

Tax Consolidation: Transitional Elections to be Finalised by 31 December 2004 - More Changes Introduced (195 kb)

05 Nov 2004 | Tax Briefs | Projects & Infrastructure

Federal Court Repairs Blackhole in the Bitumen

This Tax Brief considers the Full Federal Court's decision in Transurban City Link Limited v FCT. The issue was whether annual Concession Fees were allowable deductions to the taxpayer.

Federal Court Repairs Blackhole in the Bitumen (221 kb)

03 Nov 2004 | Tax Briefs | GST

Transitionally GST-Free Contracts - 1 July 2005 Legislative Fix

Transitional treatment for certain GST-free contracts ended on 1 July 2005. This Tax Brief considers the amending legislation that enabled suppliers to pass on GST liabilities on these contracts.

Transitionally GST-Free Contracts - 1 July 2005 Legislative Fix (198 kb)

07 Oct 2004 | Tax Briefs | Financial Services

Even More Non-Deductible Interest

Interest deductibility, Macquarie Finance, perpetual note, stapled security, capital outgoing, Part IVA

Even More Non-Deductible Interest (176 kb)

06 Oct 2004 | Tax Briefs | Financial Services

Bank Takes Tax Hit on Income Securities

Hill J considered whether “interest” payable on notes issued by Macquarie Finance which were stapled to preference shares issued by Macquarie Bank were deductible under section 8-1.

Bank Takes Tax Hit on Income Securities (263 kb)

09 Sep 2004 | Tax Briefs | International

McDermott Industries (Aust.) Pty. Ltd. v. Commissioner of Taxation [2004] FCA 1044

This case considered whether a Singapore company had a permanent establishment in Australia by virtue of it chartering a vessel to an Australian company. The Australia/Singapore double tax treaty deems an entity to have a permanent establishment if “substantial equipment is being used … by, for or under contract with the enterprise”, and the question was whether leasing a vessel for use in Australia was enough.

McDermott Industries (Aust.) Pty. Ltd. v. Commissioner of Taxation [2004] FCA 1044 (240 kb)

09 Sep 2004 | Tax Briefs | International

Lopez v Deputy Commissioner of Taxation [2004] FCA 756

Lee J considered whether fees received by a chemical engineer for “consultancy and management” services whilst working in Nigeria over a period of 8 months was exempt foreign employment income pursuant to s.23AG.

Lopez v Deputy Commissioner of Taxation [2004] FCA 756 (141 kb)

08 Sep 2004 | Tax Briefs | International

Withholding Tax on Interest Paid to US and UK Financial Institutions - The ATO's Opening Gambit

TR 2004/D16 – ATO view on the operation of the interest withholding tax (IWT) exemption in Australia’s double tax treaties with the United Kingdom and the United States for interest derived by a financial institution which is unrelated to and dealing wholly independently with the payer.

Withholding Tax on Interest Paid to US and UK Financial Institutions - The ATO's Opening Gambit (266 kb)

26 Aug 2004 | Tax Briefs | Financial Services

TOFA - Another Announcement - Another Delay

This Tax Brief considers the announcement from the new Assistant Treasurer, Mr Mal Brough, on 5 August 2004 which revises current TOFA proposals, proposes certain amendments and delays the implementation of later stages of TOFA.

TOFA - Another Announcement - Another Delay (154 kb)

02 Aug 2004 | Tax Briefs | GST

GST Transition Surprise for Packer

This Tax Brief considers the Federal Court decision in ACP Publishing Pty Ltd v Commissioner of Taxation which held that sale of a 50% interest in a business pursuant to a “Savoy Clause” in an agreement executed in 1980 was GST-free even though it allowed the parties to determine the price for a supply after 1 July 2000.

GST Transition Surprise for Packer (250 kb)

02 Aug 2004 | Tax Briefs | Financial Services

Quiet Texan Drawl Puzzles Commissioner

This Tax Brief considers the cases of Rataplan Pty Ltd v FCT and its companion case, Westrac Equipment Pty Ltd v FCT which illustrate the inability of the tax law in force in 1991 to deal appropriately with related-party dealings producing what might be seen as mischievous tax results.

Quiet Texan Drawl Puzzles Commissioner (241 kb)

08 Jul 2004 | Tax Briefs | Private Wealth

Commissioner's Spotlight Remains Focussed on Part IVA

This Tax Brief considers the case of Spotlight Stores Pty Ltd v Commissioner of Taxation which considered in detail the various tests for the application of Part IVA.

Commissioner's Spotlight Remains Focussed on Part IVA (648 kb)

07 Jun 2004 | Tax Briefs | GST

GST-Free Supplies of Services to Non Residents - Court Supports Commissioner's Draft Ruling

This tax brief considers when a foreign company is ‘in Australia’ and therefore whether GST should be charged on invoices for supplies made to it.

GST-Free Supplies of Services to Non Residents - Court Supports Commissioner's Draft Ruling (252 kb)

02 Jun 2004 | Tax Briefs | Private Wealth

Pratt Brings Clarity - Accountants and Legal Professional Privilege

This tax brief summarises the decision in Pratt Holdings v FCT on whether advice obtained by a taxpayer from an accounting firm to be provided to the taxpayer’s legal adviser is subject to legal professional privilege.

Pratt Brings Clarity - Accountants and Legal Professional Privilege (158 kb)

31 May 2004 | Tax Briefs | Private Wealth

High Court Re-Mystifies Part IVA

The tax brief summarises the High Court decision in FCT v Hart and its interpretation of Part IVA

High Court Re-Mystifies Part IVA (206 kb)

05 Apr 2004 | Tax Briefs

Reef Networks Pty Ltd v DFC of T [2003] FCA 1552

This Tax Brief discusses a Federal Court decision in which a taxpayer was allowed depreciation deductions for a fibre optic cable leased from Queensland Rail (QR) where part of the cable licenced to Optus for a fee and part was provided to QR without charge.

Reef Networks Pty Ltd v DFC of T [2003] FCA 1552 (151 kb)

22 Apr 2004 | Tax Briefs | Corporate and Mergers & Acquisitions

Equivocal Changes Proposed for Corporate Loss Rules

This Tax Brief analyses the April 2004 Treasury discussion paper on Loss Recoupment Rules for Companies. The impetus for the paper was the apparent belief in Treasury that companies excessively rely on the same business test to recoup prior year losses because of growing concern and cost associated with demonstrating the continuity of ownership test has been met.

Equivocal Changes Proposed for Corporate Loss Rules (251 kb)

03 Mar 2005 | Tax Briefs | Employment & Superannuation

Pride Comes Before a Fall

This Tax Brief considers the decision of the Full Federal Court in Pridecraft Pty Ltd v Commissioner of Taxation [2004] FCAFC 339, upholding the decision of Merkel J and confirming the Commissioner’s stance against what he viewed as a harmful tax scheme cloaked as an employee rewards system.

Pride Comes Before a Fall (602 kb)

08 Feb 2005 | Tax Briefs | Corporate and Mergers & Acquisitions

Misadventure for Joint Venture Participant

This Tax Brief consider a decision of the AAT concerning the treatment of termination payments by joint venture participants.

Misadventure for Joint Venture Participant (204 kb)

04 May 2004 | Tax Briefs | Private Wealth

Packer Wins Battle, Commissioner Wins War

This Tax Brief analyses the Full Federal Court’s decision in Asiamet (No.1) Resources Pty Limited v FCT. The Court upheld the decision at first instance on the Commissioner’s discretion to grant extensions of time for loss transfers under s.80G(6A)(b) of the Income Tax Assessment Act 1936.

Packer Wins Battle, Commissioner Wins War (255 kb)

08 Apr 2004 | Tax Briefs | International

Participation Exemption and Reform of the CFC Rules

This Tax Brief discusses legislation introduced following the Review of International Taxation to enact an exemption from Australian tax for dividends and capital gains in respect of non-portfolio shareholdings in foreign companies.

Participation Exemption and Reform of the CFC Rules (164 kb)

19 Mar 2004 | Tax Briefs | International

New Australia UK Tax Treaty Commences Operation from 1 April 2004 Are you Ready?

This Tax Brief outlines key aspects of the new Australia-UK tax treaty signed on 21 August 2003.

New Australia UK Tax Treaty Commences Operation from 1 April 2004 Are you Ready? (253 kb)

05 Mar 2004 | Tax Briefs | Financial Services

Our Mutual Friend Gives Clubs and Cooperatives a Dickens of a Hiding

This tax brief provides a summary of the Federal Court decision in Coleambally Irrigation Mutual Co-operative Ltd v Commissioner of Taxation [2004] FCA 2.

Our Mutual Friend Gives Clubs and Cooperatives a Dickens of a Hiding (264 kb)

02 Mar 2004 | Tax Briefs | Employment & Superannuation

New Superannuation Measures

This tax brief provides a summary of the Government’s discussion paper on superannuation and retirement income proposals, “Australia’s Demographic Challenges”, released on 25 February 2004.

New Superannuation Measures (163 kb)

30 Jan 2004 | Tax Briefs | International

First Tranche of New International Tax Arrangements

This Tax Brief considers The New International Tax Arrangements Bill 2003 which contains the first tranche of changes foreshadowed in the government's 2003 Budget response to the Review of International Tax Arrangements.

First Tranche of New International Tax Arrangements (129 kb)

13 Jan 2004 | Tax Briefs | Employment & Superannuation

The Search for the Holy Grail

This Tax Brief considers the case of Walstern v Commissioner for Taxation wherein the taxpayer had attempted to find the holy grail of unlimited deductions for contributions made to a superannuation fund without tax or FBT.

The Search for the Holy Grail (273 kb)

13 Jan 2004 | Tax Briefs | Corporate and Mergers & Acquisitions

Dividend Trap Catches Taxpayer

This Tax Brief considers the 8 December 2003 decision of the Full Federal Court rejecting the taxpayer's appeal against the judgment of Lindgren J. in Spassked Pty Limited and others v Commissioner of Taxation.

Dividend Trap Catches Taxpayer (47 kb)

19 Dec 2003 | Tax Briefs | Financial Services | International

Foreign Exchange Rules Become Law and the Countdown to 16 January 2004 Begins

The Tax Brief considers the elections created under the new forex regime and the significant and permanent tax effects for taxpayers, opportunities to be exploited and pitfalls to be avoided.

Foreign Exchange Rules Become Law and the Countdown to 16 January 2004 Begins (225 kb)

02 Dec 2003 | Tax Briefs | Financial Services | International

Forex Measures Enacted

This Tax Brief outlines the proposed introduction (as part of the TOFA project) of foreign exchange gain and loss measures which are intended to provide a single systematic regime for dealing with the conceptual issues that foreign exchange transactions raise.

Forex Measures Enacted (267 kb)

12 Nov 2003 | Tax Briefs | Corporate and Mergers & Acquisitions

Tax Offset Arising From Franking Deficit Tax Liability

This Tax Brief discusses changes to the rules providing a tax offset for franking deficit tax implemented as part of moving the rules from the 1936 Act to the 1997 Act.

Tax Offset Arising From Franking Deficit Tax Liability (127 kb)

10 Nov 2003 | Tax Briefs | Private Wealth

FCT v Zoffanies Pty Ltd

This Tax Brief considers the Federal Court decision in FCT v Zoffaines in which the a decision of the AAT that the provisions of Part IVA did not apply to the circumstances of the case which involved an R&D syndicate was set aside and remitted to the AAT for re-hearing.

FCT v Zoffanies Pty Ltd (206 kb)

10 Nov 2003 | Tax Briefs | Employment & Superannuation

Casuals' Overtime Far From Ordinary

This Tax Brief considers the High Court decision in Australian Communication Exchange Ltd v DCT in relation to the meaning of ‘ordinary time earnings’ in the context of causal employees covered by a Queensland award for the purposes of the superannuation guarantee charge.

Casuals' Overtime Far From Ordinary (177 kb)

29 Oct 2003 | Tax Briefs | Private Wealth

The Pendulum Swings Back to Enforcement

This Tax Brief serves to remind large business taxpayers that the ATO is back in the enforcement business.

The Pendulum Swings Back to Enforcement (120 kb)

03 Oct 2003 | Tax Briefs | Private Wealth

Sleight v Commissioner of Taxation [2003] FCA 896

The Federal Court held that Part IVA had no application and consequently allowed the claims for deductions by the taxpayer in connection with his investment in a tea tree oil cultivation project, a “tax effective investment scheme”.

Sleight v Commissioner of Taxation [2003] FCA 896 (208 kb)

03 Oct 2003 | Tax Briefs | Employment & Superannuation

FCT v MacArthur

This case emphasises the importance of careful consideration in setting up companies to act as contractors where the principal business of the company is to supply the services of the major shareholder. The Commissioner argued that if the taxpayer had not contracted in the name of his company, it would be reasonable to assume he would have contracted in his own name. The appeal was allowed.

FCT v MacArthur (230 kb)

09 Sep 2003 | Tax Briefs | Employment & Superannuation

Metaskills's Not So Mega-Skills of Alienation of Personal Services Income

This was the first court decision to consider the personal services income tax regime. It was however vitiated by the failure of the taxpayer to come within the operation of the specific provisions of the regime.

Metaskills's Not So Mega-Skills of Alienation of Personal Services Income (157 kb)

09 Sep 2003 | Tax Briefs | Private Wealth

Harts Case

This Tax Brief considers the decision of the Full Federal Court in Harts Case which upheld the decision decision to deny deductions for outgoings incurred in connection with the conduct of air-show activities by the taxpayer and ruled that the taxpayer was reckless in claiming those losses as deductions.

Harts Case (289 kb)

25 Aug 2003 | Tax Briefs | Private Wealth

ATO Releases New Compliance Program

This Tax Brief considers the Australian Taxation Office compliance program 2003, complementing the detailed large business compliance plan released in June.

ATO Releases New Compliance Program (106 kb)

04 Aug 2003 | Tax Briefs | Private Wealth

"QT-Pie in Streamland: No Fairytale Ending"

This Tax Brief considers the decision in Electricity Supply Industry Superannuation (Qld) Ltd v Deputy Commissioner of Taxation wherein the Full Federal Court considered whether there was a franking credit streaming arrangement within the meaning of Part IVA.

"QT-Pie in Streamland: No Fairytale Ending" (320 kb)

11 Jul 2003 | Tax Briefs | Employment & Superannuation

Superannuation Thresholds 2002/2003 and 2003/2004 - At a Glance

This Tax Brief sets out the Superannuation Guarantee rates for 2002/2003 and 2003/2004 Payable Quarterly from the Quarter beginning 1 July 2003.

Superannuation Thresholds 2002/2003 and 2003/2004 - At a Glance (91 kb)

07 Jul 2003 | Tax Briefs | Employment & Superannuation

Cooper v Commissioner of Taxation [2003] AATA 296

This Tax Brief considers an Administrative Appeals Tribunal decision that a lump sum paid in arrears of invalidity benefits under a Defence Force benefits scheme, was not an Eligible Termination Payment ("ETP"), and rather, was assessable income derived in the year the lump sum was paid.

Cooper v Commissioner of Taxation [2003] AATA 296 (161 kb)

14 Jun 2003 | Tax Briefs | Private Wealth

Mochkin Arrives at the Emerald City

This Tax Brief considers the decision of the Full Court in Federal Commissioner of Taxation v Mochkin, which dealt with the operation of Part IVA and the diversion of personal services income.

Mochkin Arrives at the Emerald City (282 kb)

14 Nov 2012 | Tax Briefs | Financial Services | International

High Court rules on Hybrid Securities

This Tax Brief analyses the High Court of Australia's judgment in Mills concerning the treatment of cross-border hybrid securities and considers some of its implications for innovative financing instruments.

High Court rules on Hybrid Securities (564 kb)

08 May 2018 | Tax Briefs

Tax Brief - Budget 2018-19

Tax Brief - Budget 2018-19 (318 kb)

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