The Federal Court of Australia Full Court in the case of Burton v Commissioner of Taxation [2019] FCAFC 141 rejected the taxpayer’s appeal in relation to an earlier Federal Court decision to deny the taxpayer claiming the full foreign Income Tax Offset (FITO) available under section 770-10 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997).
The Australian Taxation Office (ATO) has provided useful guidance and ‘safe harbours’ for when the executors or beneficiaries of a deceased estate can access the Capital Gains Tax (CGT) main residence exemption for a property that was the deceased’s main residence at the time of their death.
With a modest surplus of $2.2 Billion predicted for 2019-20, and tax cuts totalling $140 Billion, Scott Morrison’s third budget is a strong indication of an imminent election.
As part of its 2017-18 Budget on 9 May 2017, the Government announced proposed amendments to the tax law which would limit the application of the small business CGT concessions (SBCGT Concessions).
The Commissioner has issued draft tax ruling TR 2017/D10 Income Tax: Trust Vesting – amending the vesting date and consequences of a trust vesting (Draft Ruling). Click here to read the full ruling. Partner, Andrew O’Bryan presented a webinar on this topic, a copy of which can be ordered here.
As anticipated, the Draft Ruling doesn’t make any major variation from the current views on the extension of vesting dates, but it is good to have some detail around trust vesting from the Commissioner and in particular a question that we continue to emphasise – what do the terms of the trust deed say?
As cryptocurrencies gather momentum among investors, it is no surprise that both the public and the Australian Taxation Office are turning their thoughts towards those who invest in this digital asset.
It should also come as no surprise that tax is an afterthought for many seeking to jump on board, particularly given the sharp rise in popularity and value of cryptocurrencies.
In Melbourne Home Insulation Pty Ltd v Commissioner of State Revenue (Review and Regulation) [2017] VCAT 654, the Victorian Civil and Administrative Tribunal (VCAT) confirmed the payroll tax reassessments for the relevant tax years issued by the Commissioner of State Revenue (Commissioner) to Melbourne Home Insulation Pty Ltd (Applicant) by reason of the Applicant’s non-appearance at the hearing.
The Federal Court in the recent case of Sandini Pty Ltd v Commissioner of Taxation [2017] FCA 287 made a declaration that the Taxpayer was entitled to relief under the marriage and relationship breakdown CGT rollover under subdivision 126A of the Income Tax Assessment Act 1997 (ITAA 1997). This was despite the fact that the assets in question were transferred directly to the family trust of the Taxpayer’s spouse – a transfer that would not ordinarily come within the scope of the rollover.