June 19, 2018
On 17 May 2018, the Commissioner issued an updated version of Practice Statement Law Administration PS LA 2008/6 ‘Fraud or Evasion’ (2018 Statement). The practice statement was previously updated in 2012 (2012 Statement).
June 4, 2018
A slight diversion!
In Hart v FCT  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.
May 21, 2018
Since our article US citizen – who me? Beware the dreaded US estate and gift tax was published, we have seen President Trump sign the ‘Tax Cuts and Jobs Act’ into law on 22 December 2017 and we are still seeing Australian senators who are not sure about their citizenship. In the last few days, the High Court ruled Labor senator Katy Gallagher was ineligible to sit in parliament which also triggered four more members of parliament resigning.
May 21, 2018
Still waiting for guidance
The ATO has updated its online guidance on ‘Assessing the Risk: Allocation of profits within professional firms guidelines’ and ‘Everett Assignments’ (Guidelines), following the initial suspension of the Guidelines in December 2017.