ATO Documents

Class Ruling CR 2019/67 QANTM Group - equity participation scheme for principals

Tax Cases

FCT v Sharpcan Pty Ltd [2019] HCA 36

The High Court has allowed the Commissioner’s appeal and held that the amount paid by the operator of a pub for the acquisition of gaming machine entitlements was an outgoing on capital account that was not deductible under section 8-1 or section 40-880 of the Income Tax Assessment Act 1997 (Cth).

Hart v FCT [2019] FCAFC 179

The Full Federal Court has dismissed the taxpayer’s appeal and held that shares disposed of following a series of roll-overs were not held for at least 12 months and therefore the capital gain was not a discount capital gain. 

Other news

Large corporate groups income tax gap

The ATO has published its latest estimate of the income tax gap for large corporate groups covering the 2010-11 to 2016-17 financial years. For 2016–17, the ATO estimates the net income tax gap for large corporate groups is $2 billion, or 4% (that is, large corporate groups paid around 96% of the total theoretical tax payable by them in 2016–17). The ATO considers that this estimated gap is primarily driven by differences in the interpretation of complex areas of tax law.

Progress of legislation

As at 18.10.19

Bill

Treasury Laws Amendment (2019 Measures No 2) Bill 2019

Description

Extends the genuine redundancy age limit to pension age, provides for interest to be paid on super payments made by ATO and provides a full luxury car tax refund (up to $10,000) for eligible primary producers and tourism operators.

Status

Passed the Senate and awaiting Royal Assent 17.10.19.

Bill

Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019

Description

Reintroduces measures in lapsed Bill to provide a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced in the House of Reps 18.09.19

Bill

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

Description

Prevent small business CGT concessions from being available for partner assignments; extend anti-avoidance rule for closely held trusts to include family trusts that undertake circular trust distributions; deny deductions relating to holding vacant land; ATO disclosure of business tax debts to credit reporting bureaus; prevent salary sacrifice from reducing SG contributions; electronic invoicing implementation; TOFA amendments

Status

Returned to the House of Reps with Senate amendments 16.10.19.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2019

Description

Reintroduces lapsed Bill containing superannuation measures. 

Status

Received Royal Assent 02.10.19. Act No 78 of 2019

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Reintroduces lapsed Bill to prohibit creditor-defeating dispositions of company property; improve accountability of resigning directors; allow Commissioner to collect estimates of anticipated GST liabilities; make company directors personally liable for GST; authorise Commissioner to retain tax refunds.

Status

Introduced into the House of Reps 04.07.19.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2019

Description  

Reintroduces measures in lapsed Bill to establish the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

 Introduced into the Senate 15.10.19.