Tag Archives: Tax

Tax implications of a ‘casual worker’

In a recent decision, the Full Court of the Federal Court has found that a ‘fly-in fly-out’ worker (Mr Skene) was not a casual worker for the purposes of the Fair Work Act 2009 (Fair Work Act).

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Talking Tax – Issue 137

Case law

Pub’s gamble pays off: gaming machine entitlements deemed revenue expenditure

A humble Daylesford hotel is the latest battleground in the age-old capital v revenue tax battle.

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Talking Tax – Issue 136

Case law

SRO come up short-sighted: distributions to beneficiaries not viewed as ‘wages’ for payroll tax purposes

In an important win for healthcare clinics, the Supreme Court of Victoria in Commissioner of State Revenue v The Optical Superstore Pty Ltd [2018] VSC 524 dismissed the Commissioner of State Revenue’s appeal and agreed with the Victorian Civil and Administrative Tribunal (VCAT) that trust distributions made to Optometrist Entities were not “wages” within the meaning of Payroll Tax Act 2007 (Vic) (PTA).

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Talking Tax – Issue 135

Case law
Are we skiing on leased or licenced land?

In Living and Leisure Australia Ltd v Commissioner of State Revenue [2018] VSCA 237, the Full Court of the Supreme Court of Appeal had to consider whether the Taxpayer was the owner of Crown land as lessee under an alpine lease at Falls Creek. In this case, the legal characterisation of the occupancy rights would determine whether the Taxpayer should be chargeable with land tax being the lessee with exclusive possession of Crown land in accordance with sections 10 and 79 under the Land Tax Act 2005 (Vic) or alternatively, not chargeable with land tax if the lease was in fact a mere licence.

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Talking Tax – Issue 134

Case law

Unexplained loans and income tax assessment

In Hourigan and Commissioner of Taxation (Taxation) [2018] AATA 3369 an individual taxpayer was partially successful in proving amended assessments were excessive, having contended that various unexplained bank deposits were predominantly received as loans from his father.

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Talking Tax – Issue 133

Case law
Federal Court refuses to remit case to AAT for review on new grounds of objection

In Wu v FCT [2018] FCA 1339, the Federal Court rejected an application of the Taxpayer to remit the case back to the Administrative Appeals Tribunal (AAT) for the purposes of considering whether the Commissioner of Taxation had correctly assessed the Taxpayer in relation to deposits received in the Taxpayer’s account (which the Taxpayer contended were savings he had accumulated from overseas).

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Talking Tax – Issue 132

Case law

Whether steps made to inquire about land tax constitutes ‘reasonable care’ in complying with the legal obligation to pay land tax

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Talking Tax – Issue 132

Case law

Sufficient evidence of a credible acquisition required for input tax credits

In Sunlea Enterprises Pty Ltd As Trustee for Drummond Cove Unit Trust and FCT [2018] AATA 2792, the Administrative Appeals Tribunal (AAT) decided that the trustee of a unit trust was not entitled to input tax credits as there was insufficient evidence of a creditable acquisition and the relevant invoices did not comply with the requirements of a tax invoice for GST purposes. This case illustrates the importance of proper documentation to ensure that you are able to substantiate and claim the relevant tax credits.

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Talking Tax – Issue 130

Case law

The High Court in Thomas: franking credit “streaming” ineffective

On Wednesday 8 August 2018, the High Court of Australia unanimously allowed one appeal, partly allowed a second appeal and dismissed two appeals from the Full Federal Court decision in Federal Commissioner of Taxation v Thomas [2018] HCA 31 (Thomas).

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Talking Tax – Issue 129

ATO updates

Draft Guidelines for Enterprise Tax Plan

The ATO has issued draft Practical Compliance Guideline PCG 2018/D5(Draft Guideline) to provide clarity for corporate tax entities regarding the compliance and administrative approaches to determining the appropriate corporate tax rate or rate for dividend imputation purposes, applying to the last three financial years.

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