Monday
SMSF trustee disqualified: serious contraventions
The AAT has affirmed the Commissioner’s decision to disqualify an individual, as the responsible officer of the corporate trustee of an SMSF, for seriousness contraventions of the SIS Act. These contraventions included the failure to comply with operating standards and lodge annual returns, and in making withdrawals contrary to conditions of release. These withdrawals amounted to over $800,000 which were used in a business that was in difficulty and to renovate a house. (Goulopoulos and FCT [2022] AATA 2540, 9 August 2022.)
ATO reminder: business expenses that can be claimed
The ATO has reminded business taxpayers of what deductions they can claim and that they can generally claim a tax deduction for most expenses, as long as: the expense relates directly to earning the business’s assessable income; only the business-use portion of an expense is claimed for a mix of business and private use; and that the business has records to substantiate its claims. The ATO then goes on to outline specific type of expenses that can be claimed.
Tax agent involved in tax evasion banned
The AAT has confirmed a 3-year ban on a Melbourne tax agent involved in serious misconduct, including tax evasion and false invoicing. The AAT supported the Tax Practitioners Board (TPB) decision to terminate the Melbourne man’s tax agent registration for 3-years on the basis that he was no longer a fit and proper person to hold a tax agent registration. The AAT also stated that the agent’s disregard for his obligations was breathtaking. His conduct included the failure to meet personal tax obligations on several fronts (including on behalf of related entities) making false declarations to the TPB, acting as a front for a shadow director, who was a bankrupt and could not act as a director in their own right. In addition, he was involved in tax evasion schemes, sham invoicing and was less than candid in engaging with the ATO.
ANAO report: ATO’s engagement with tax practitioners
The Australian National Audit Office (ANAO) has released its report into the “Australian Taxation Office’s Engagement with Tax Practitioners”. The objective of the audit was to assess the effectiveness of the ATO’s engagement with tax practitioners in achieving efficient and effective taxation and superannuation systems. It states, among other things, that the “ATO’s corporate and business plans and various tax practitioner targeted strategies and initiatives provide aspects of a fit-for-purpose tax practitioner engagement strategy, however, there are gaps. The ATO has a range of objectives underpinning its engagement with tax practitioners. The ATO has not clearly linked its strategies to its tax practitioner engagement objectives and provides limited public information about its strategic approach. As of April 2022, the ATO was developing an overarching strategy to guide its engagement with tax practitioners that aims to be more coherent and integrated.”
GST adjustment notes requirements – new draft instrument
The ATO has released Draft LI 2022/D11: A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2022. It contains information requirements that apply to all entities that issue adjustment notes for the purposes of the GST Act. It will replace the A New Tax System (Goods and Services Tax) Adjustment Note Information Requirements Determination 2012. It commences on the day after it is registered on the Federal Register of Legislation.
ATO Lodge & Pay Working Group
With a view to continual improvement its Lodge & Pay section, the ATO has established a working group to look at the processes and procedures around debt payment plans, what is working, what is not, and where there may be room for improvement. The ATO participants in the working group are joined by representatives from the practitioner associations, members in public practice, and other advisers. Tax & Super Australia is your voice on this working group. Should you wish to contribute to this conversation please email our Member services team at members@taxandsuperaustralia.com.au or call them on (03) 8851 4555. We would love to hear your experiences, good or bad.
Corporate tax transparency threshold for private companies reduced
The ATO has issued a reminder that following the passing of Treasury Laws Amendment (2022 Measures No. 1) Act 2022 on 9 August 2022, the corporate tax transparency income threshold for Australian-owned resident private companies has been reduced from $200m to $100m. These means that in terms of the ATO’s obligation to publish corporate tax transparency reports which contain information reported to the ATO by large corporations, such companies will be included in this process from the 2023 income year.
Australia and Hungary: Multilateral Instrument
The ATO has advised that the synthesised text of the MLI and the Agreement between Australia and the Republic of Hungary is expected to be released tomorrow. A synthesised text helps users of the tax treaty understand how the MLI modifies a particular tax treaty. The MLI is a multilateral treaty that enables jurisdictions to swiftly modify the operation of their tax treaties to implement measures designed to better address multinational tax avoidance and more effectively resolve tax disputes. (For further details around MLIs see 22.210 of the newly released Tax Summary 2022-23)
Draft Regs: Shorter period of review for SMEs
The Government has released exposure draft regulations in relation the 2020‑21 Budget proposal to increase the small business entity turnover threshold from $10m to $50m annual aggregated turnover for various tax concessions. One of these concessions was access to a shorter two‑year period of review for income tax assessments – as opposed to the standard four‑year period. However, note the announcement specifically excluded entities with significant international tax dealings or particularly complex affairs – for which additional time is required for taxpayers and the ATO to consider and finalise the tax position of taxpayers in these categories. Submissions close on 13 September 2022.
ATO Corporate Plan for 2022-23
The ATO has released its Corporate Plan for 2022–23. It highlights 7 key focus areas and another 19 core priorities in relation to its vision of being a leading tax, superannuation and registry administration. One of the key focus areas is its use of data and digital – especially in relation to its early intervention activities and its goal of prevention rather than correction. The ATO also said that in 2022–23, there will be a further expansion of the use of Single Touch Payroll (STP) data to simplify employer reporting obligations.
ATO Lodge & Pay Working Group
With a view to continual improvement its Lodge & Pay section, the ATO has established a working group to look at the processes and procedures around debt payment plans, what is working, what is not, and where there may be room for improvement. The ATO participants in the working group are joined by representatives from the practitioner associations, members in public practice, and other advisers. Tax & Super Australia is your voice on this working group. Should you wish to contribute to this conversation please email our Member services team at members@taxandsuperaustralia.com.au or call them on (03) 8851 4555. We would love to hear your experiences, good or bad.
Corporate tax transparency threshold for private companies reduced
The ATO has issued a reminder that following the passing of Treasury Laws Amendment (2022 Measures No. 1) Act 2022 on 9 August 2022, the corporate tax transparency income threshold for Australian-owned resident private companies has been reduced from $200m to $100m. These means that in terms of the ATO’s obligation to publish corporate tax transparency reports which contain information reported to the ATO by large corporations, such companies will be included in this process from the 2023 income year.
Australia and Hungary: Multilateral Instrument
The ATO has advised that the synthesised text of the MLI and the Agreement between Australia and the Republic of Hungary is expected to be released tomorrow. A synthesised text helps users of the tax treaty understand how the MLI modifies a particular tax treaty. The MLI is a multilateral treaty that enables jurisdictions to swiftly modify the operation of their tax treaties to implement measures designed to better address multinational tax avoidance and more effectively resolve tax disputes. (For further details around MLIs see 22.210 of the newly released Tax Summary 2022-23.)
ATO Lodge & Pay Working Group
With a view to continual improvement its Lodge & Pay section, the ATO has established a working group to look at the processes and procedures around debt payment plans, what is working, what is not, and where there may be room for improvement. The ATO participants in the working group are joined by representatives from the practitioner associations, members in public practice, and other advisers. Tax & Super Australia is your voice on this working group. Should you wish to contribute to this conversation please email our Member services team at members@taxandsuperaustralia.com.au or call them on (03) 8851 4555. We would love to hear your experiences, good or bad.
Corporate tax transparency threshold for private companies reduced
The ATO has issued a reminder that following the passing of Treasury Laws Amendment (2022 Measures No. 1) Act 2022 on 9 August 2022, the corporate tax transparency income threshold for Australian-owned resident private companies has been reduced from $200m to $100m. These means that in terms of the ATO’s obligation to publish corporate tax transparency reports which contain information reported to the ATO by large corporations, such companies will be included in this process from the 2023 income year.
Australia and Hungary: Multilateral Instrument
The ATO has advised that the synthesised text of the MLI and the Agreement between Australia and the Republic of Hungary is expected to be released tomorrow. A synthesised text helps users of the tax treaty understand how the MLI modifies a particular tax treaty. The MLI is a multilateral treaty that enables jurisdictions to swiftly modify the operation of their tax treaties to implement measures designed to better address multinational tax avoidance and more effectively resolve tax disputes. (For further details around MLIs see 22.210 of the newly released Tax Summary 2022-23.)
Friday
Correct process for requesting copies of tax documents
To support registered tax agents get a timely response when they request copies of tax documents (COTD), the ATO is providing a new form and promoting the correct process to use.
This action has been taken due to the ATO observing an increase in errors when submitting these requests, which results in unnecessary delays. To help address some of these errors, on 20 August 2022 the ATO will update their Copies of tax documents request page with more details and a new form.
Correct process
To request COTD for clients, agents need to use OSfA and be authorised on the client’s record to do so. In OSfA agents can self-serve copies of:
- income tax returns and notices of assessment for 2010 onwards – by selecting Lodgments then Income tax
- payment summaries or income statements (pre-fill) for 2009 onwards – by selecting -Reports and forms then Reports
Agents need to use the new form, available soon, and submit it via Practice mail in OSfA for copies of older lodgements.
Transition period
From 1 October 2022, if agents submit a request using the incorrect form or process, the ATO will reply directly to them to advise how to resubmit the request correctly.
Help available to use OSfA
The ATO have detailed information available to help agents correctly use OSfA. Agents can access the:
- Help content in OSfA
- Online services for agents user guide on the ATO website.
Cancellation of registration for criminal offence confirmed
The Federal Court has confirmed the decision of the Tax Practitioners’ Board (TPB) to cancel the registration of the agent in relation to her conviction under s 254 of the Crimes Act 1900 (NSW) for using a “false document to influence the exercise of a public duty”. The agent had used false bank cheques for stamp duty payment purposes in her dealings with the NSW Office of State Revenue. On appeal, the Federal Court dismissed the agent’s claim that the AAT at first instance had made incorrect findings as to the nature and identity of her criminal convictions. The Court also dismissed her claims that the AAT had given inadequate reasons for its decision, had denied her procedural fairness and misapplied the tests for “continuing registration” in the Tax Agent Services Act 2009. (Beckett v Tax Practitioners Board [2022] FCA 930, 12 August 2022.)
NSW duty: General statement re transfer duty and leases
NSW Sate Revenue has issued a “General statement” regarding transfer duty and leases pending the release of proposed Regulations on the issue. It provides, among other things, that the creation and extinguishment of dutiable property, which includes leases, is dutiable unless exempt or excluded. Excluded items include the grant, renewal or variation of a lease for no consideration and any transactions prescribed by the Regulations. The proposed regulation will commence from 19th of May 2022. For further information, see the NSW Revenue website, here.
