Tax Office Sets Compliance Focus Areas for 2010/11
The Tax Office has released its compliance program for 2010/11.

ATO is Contacting Participants in Collapsed Agribusiness MIS
A number of participants of recently collapsed Agribusiness MISs may soon be contacted by the ATO.

GST and Requirements for Tax Invoices
The GST regulations which previously specified the requirements for documents to be tax invoices has been removed.

Reportable Employer Superannuation Contributions Definition: Changes Proposed
The Government has proposed to clarify the definition of RESCs.

Minimum Pension Drawdown Amounts — 50% Reduction to Continue
The 50% reduction in the required minimum payment amounts that must be made from account-based, allocated and market-linked pensions will be extended another year.

Division 7A Benchmark Interest Rate
The Tax Office has announced the Div 7A benchmark interest rate for the income year that commenced 1 July 2010.

Trust’s Unrealised Gains Can Be Treated as Income
In a recent case, the NSW Court of Appeal has confirmed that it was permissible for a trust, in terms of its trust deed and accepted accounting principles, to treat unrealised gains made on share investments as income of the trust.

ATO Sends Warning to SMSFs Regarding Employee Share Schemes
The Tax Office has issued a Taxpayer Alert on arrangements involving employee share schemes.

Reasonable Travel and Meal Allowance Amounts
The Commissioner has determined the amounts considered reasonable for travel and meal allowances for the 2010/11 income year.

Superannuation and Instalment Warrant Rule Changes
The superannuation law has been amended to reduce the risks for super funds investing in instalment warrants.

Cooper Super Review Makes 177 Recommendations
The Government has released the long-anticipated final report of the Super System Review.

Trust Income and Bamford: Tax Office View
The Tax Office has released a statement outlining the Commissioner's view on the High Court's decision on a case dealing with trust income issues.

Div 7A Loans and Trust Entitlements
The Tax Office has released a Taxation Ruling which considers when a private company with an unpaid present entitlement from an associated trust is considered to have made a loan to the trust.

Commissioner's Discretion to Disregard Deemed Dividend Provisions
The Tax Office has released a Draft Taxation Ruling which outlines the requirements to be satisfied before the Commissioner can disregard a deemed unfranked dividend from arising when a private company lends an amount to a shareholder.

Vacant Land not Input Taxed as ‘Residential Premises’
In a recent case, the Full Federal Court has unanimously dismissed a taxpayer's appeal against an assessment of GST in respect of the sale of two separate blocks of vacant land.

SMSFs and Instalment Warrants: Rules to be Tightened
The Government has proposed amendments to the superannuation law to reduce risks for super funds investing in limited recourse borrowing arrangements (eg instalment warrant arrangements).

Superannuation Co-contribution: Proposed Changes
The Government has proposed amendments to modify the operation of the Government superannuation co-contribution scheme.

Henry Tax Recommendations to Watch Out For
There are a number of recommendations made by the Government in response to the Henry Report which, if implemented, will impact many taxpayers.

Various Rates and Thresholds for 2010/11
The Tax Office has released rates and thresholds for car depreciation, luxury car tax and CGT improvements.

GIC and SIC Rates Released
The Tax Office has advised the GIC and SIC rates for the first quarter of the 2010/11 financial year.

Division 7A Applies To ‘Payments by Direction’
A Federal Court decision relating to deemed dividends and directions by a company for its debtor to pay amounts to a shareholder.

Judgment of $81.4 million Stands Against Trustee
A Qld Court of Appeal decision relating to a trustee and its liability to pay tax.

Personal Superannuation Contributions Deduction Denied
An Administrative Appeals Tribunal decision relating to disputed deduction for personal superannuation contributions.

SMSF Trustees with Enduring Power of Attorney
An SMSF Ruling on how a person who holds an enduring power of attorney can be a trustee in place of an SMSF member.

SMSF Trauma Insurance Policies
An SMSF Determination on how SMSF trustees can purchase a trauma insurance policy and still satisfy the sole purpose test.

Super System Review: Preliminary Report on SMSFs
The Super System Review panel has released a report containing many recommendations in relation to SMSFs.

Cents per Kilometre Rates
The Government has released the cents per kilometre rates for calculating motor vehicle expenses for the 2009/10 income year.

Offsetting Business Losses against Other Income
Taxpayers who exceeded the new income threshold can, in limited circumstances, still offset their business losses.

Phoenix Activities - Government Flags Possible Action
The Government has flagged possible action to combat fraudulent phoenix activities.

Dodgy GST Arrangements and Artificial Credits on Tax Office Radar
A Taxpayer Alert warning taxpayers about uncommercial arrangements to obtain reduced input tax credits.

Entrepreneurs’ Tax Offset - Income Test Introduced
Legislative changes to introduce an income test to restrict eligibility to the entrepreneurs’ tax offset.

Investors of Failed Forestry Schemes - Deductions Protected
Legislative changes to protect deductions claimed by investors in failed forestry managed investment schemes.

Superannuation Clearing House - Coming Soon
Legislative changes to establish a superannuation clearing house for employer superannuation contributions.

CGT Small Business Retirement Exemption - Anomaly Corrected
Legislative changes to correct an unintended effect on the operation of the CGT small business retirement exemption.

Replacement Dwelling - CGT Main Residence Exemption Clarified
Legislative changes to ensure a replacement dwelling is treated as the original dwelling.

‘Accrued’ Farm Management Fees Assessable
An Administrative Appeals Tribunal decision relating to the assessability of farm management fees.

Tax Liabilities for Duty-Free Goods Seller
An Administrative Appeals Tribunal decision relating to the sale of cigarettes and consequent tax liabilities.

GST Assessment for Net Amounts
An Administrative Appeals Tribunal decision relating to disputed claimed input tax credits.

Superannuation - What is Meant By ‘Contribution’?
A Taxation Ruling explaining the Commissioner's views on ‘contribution’.

Self-Managed Super Funds and Acquiring Assets from Related Parties
A SMSF Ruling explaining the rules which prohibit an SMSF from acquiring an asset from a related party.

R&D Tax Offset Abuse
The Tax Office has issued a Taxpayer Alert warning taxpayers of investment schemes that abuse the research and development tax offset.

Deductions and Refinancing Home Loans
The Tax Office has issued a Taxpayer Alert describing sham arrangements that are promoted as ‘mortgage management plans’.

Uncommercial Offshore Superannuation Trusts
The Tax Office is scrutinising offshore trust structures masquerading as superannuation funds used by taxpayers to avoid tax on money shifted into Australia.

Superannuation Funds and Illegal Early Release
The Tax Office has implemented steps to improve the self-managed superannuation fund registration process to prevent illegal early release of benefits.

Excess Contributions Tax: Commissioner’s Discretion
The Tax Office has provided guidance on whether the Commissioner will exercise his discretion to disregard excess non-concessional contributions.

Payment from Transition-to-retirement Pensions
The Tax Office has also provided guidance on whether a payment from a transition-to-retirement pension can be taxed as a superannuation lump sum.

No Deduction for Misappropriated Money
The Full Federal Court has held that a taxpayer was not entitled to a deduction for money misappropriated by his agent.

FBT Audit and Compliance Activities
We include a summary of the FBT audit and compliance activities currently being undertaken by the Tax Office.

GST: Decreasing Adjustment Note Threshold Increased
The GST decreasing adjustment note threshold will increase to $75 or less with effect from 1 July 2010.

Goods Taken for Private Use
The Tax Office have released the reasonable amounts that they will accept as the value of goods taken from trading stock for private use for the 2009/10 income year.

Proposed Amendments to the Tax Laws
The Government has introduced a Bill seeking to amend the tax laws, including optional CGT rollover relief for the transfer of assets between ‘fixed’ trusts.

Improvements to GST Administration
The Government has also introduced a Bill proposing improvements to GST administration, including a four-year limitation period to claim input tax credits and recovery of overpaid GST refunds.

GST and Sale of Vacant Land
The Federal Court has held that vacant land does not satisfy the definition of residential premises and, therefore, constitutes a taxable supply.

Capital Losses and Continuity of Trust
The Federal Court has also affirmed a trust was entitled to offset its capital gains with carried forward capital losses even though the membership of the trust had changed.

Deductibility of Disability Superannuation Benefit Premiums
The Government has announced a transitional arrangement will be introduced to allow superannuation funds to deduct total and permanent disability (TPD) insurance premiums.

Trauma Insurance Policies and SMSFs
The Commissioner has released his preliminary views on the implications of SMSFs purchasing trauma insurance policies for their members.

GIC and SIC Rates Released
The Tax Office has released the interest rates for the third quarter of the 2009/10 income year.

Division 7A loans: trust entitlements - TR 2009/D8