The High Court in the case of Glencore International AG & Ors v Federal Commissioner of Taxation [2019] HCA 26 has unanimously rejected an application for an injunction brought by the Glencore Group (Glencore) to restrain the Federal Commissioner of Taxation (Commissioner) from using documents that were released as a part of the ‘Paradise Papers.’
The Australian Taxation Office released Practical Compliance Guideline (PCG) 2019/4 on 12 June 2019 which explains the Commissioner of Taxation’s compliance approach to how certain liabilities (i.e. ‘lease surrender liabilities’ and/or ‘increase entry price’ liabilities) are to be treated when a retirement village operator leaves an income tax consolidated group, and where the value of such liabilities has increased between the operator joining and leaving the group. PCG 2019/4 relates only to the treatment of the increase in the liability, which is taken through the entity’s profit and loss account – at which point no deduction is available
The ATO’s recently announced cryptocurrency data matching program continues its steady push into working out how to apply the tax laws to cryptocurrency. It also has the potential to cause some panic among those involved in cryptocurrency dealings.
Australia and Israel have signed a double taxation agreement (DTA), the first of its kind between the two countries.
In Hart v FCT [2018] FCAFC 61, the Full Federal Court unanimously dismissed an appeal against a Part IVA determination that had the effect of including part of the earnings of a law firm in the Taxpayer’s assessable income. The Taxpayer entered into two arrangements with others called the ‘New Venture Income Scheme’ (NVI Scheme). The effect of the scheme was to divert two classes of earnings away from the Taxpayer, or entities he controlled, and into the hands of a company with carried forward tax losses. Then, following a series of gifts and subscriptions for capital, the earnings were paid to the Taxpayer in the form of loans. The Commissioner assessed the earnings as taxable income in the Taxpayer’s hands.
