Monday
ATO: Current GIC and SIC rates published
The ATO has published the current general interest charge (GIC) rates and information on when GIC applies to late tax payments. The ATO has also published the current shortfall interest charge (SIC) rates and information on when the SIC applies for amended tax assessments.
ATO reminder: Certain SARs returns due by 31 October
The ATO has reminded trustees of SMSFs which had assets on 30 June 2022, that they need to lodge an SMSF annual return (SAR) for the 2021–22 financial year. The lodgment due date will depend on your circumstances. If you’re a new SMSF and are preparing the SAR yourself, or if you have previously lodged a late SAR, your due date is 31 October 2022. The ATO also warned that failing to lodge your SAR on time can result the compliance status of your SMSF on Super Fund being changed to ‘regulation details removed’ which may result in rollovers and employer contributions not being made to the fund.
Tuesday
Pt IVA applies to restructure of financial service business
The Federal Court has held that Pt IVA applied to one of three schemes identified by the Commissioner involving the restructuring of a financial service business “in anticipation of it conducting an initial public offering (IPO) of stapled securities”. Essentially, the effect of the identified scheme was to have certain income of the business flow to non-resident controllers as opposed to resident group companies, which would be result in a lower tax rate. The Court found, among other things, that “the manner in which the scheme was entered into or carried out was indicative of a dominant purpose of obtaining a tax benefit” and that therefore Pt IVA applied to cancel the benefit. (Minerva Financial Group Pty Ltd v FCT [2022] FCA 1092, 16 September 2022.)
Senator Bragg releases Draft Digital Asset regulation Bill
Liberal Senator Andrew Bragg has released a draft bill for consultation, entitled the Digital Assets (Market Regulation) Bill 2022. The Bill proposes to introduce licenses for Digital Asset Exchanges, Digital Asset Custody services and Stablecoin Issuers. It also includes the requirements for Australian or foreign currency to be held in reserve in an Australian bank and for frequent reporting. Consultation is open until 31 October 2022.
ATO: FBT guide for employers updated
The ATO has advised that it will update Chapter 7 of its FBT guide for employers which deals with car fringe benefits. It will be rewritten to provide a step-by-step guide to identifying and calculating the taxable value of car fringe benefits. While not providing a new “ATO view”, the revised information and examples will be easier to follow.
ATO: Updating client details
The ATO has updated its information on how to update your client’s details online using the practitioner lodgment service (PLS) or Online services for agents. The information deals with the following matters: address changes; financial institution details; name changes for individuals and sole traders; and lodging prior-year returns.
Court imposes $7.2m fine on financial advisory firm
ASIC has advised that the Federal Court has imposed a $7.2m penalty on a financial advisory group after six of its representatives failed to act in their clients’ best interests and failed to provide advice appropriate to their clients’ circumstances. In response to the Court’s decision, ASIC said that licensees need to ensure their representatives are taking into account their clients’ specific needs and circumstances. ASIC also said that advice that fails to reflect client circumstances− or advice models that lead to one-size-fits-all outcomes – are less likely to meet “best interest” duty obligations.
