Birchstone Brief for the week ended 20 January 2023

Section 100A Webinar

Register for our section 100A webinar, which has been rescheduled to 7 February at 11 am AWST / 2 pm AEDT, where Daniel Taborsky will dissect the finalised ATO guidance on section 100A (TR 2022/4 and PCG 2022/2).

What are the differences between the draft guidance and the finalised versions? 

What should you be doing now? 

Click the link below to find out more and to register.
Register for our Section 100A Webinar

The Financial Adviser’s Toolbox

As a financial adviser, the tools in your toolbox are what allow you to provide value to your clients.

Sharpen your tools by joining Birchstone Tax Law on Wednesday 15 February for a breakfast seminar at Frasers King’s Park as we run through some recent legal developments and strategies for your clients specifically for financial advisers.

The seminar will be accredited by the Financial Planning Association of Australia for 1 CPD hour.

Click the link below to find out more and to register.
Register for our in-person Financial Advisors Seminar

ATO Updates

Class rulings and errata released

The ATO has issued:

  • CR 2023/1 – Euroz Hartleys Group Ltd – Capital return; 
  • CR 2023/2 – Euroz Hartleys Group Ltd – Employee share scheme – Capital return; 
  • CR 2022/97E1 – Erratum to CR 2022/97 – Moneytech Group Ltd – Demerger of Monoova Ltd; and
  • TR 2022/3E1 – Erratum to TR 2022/3 – Income tax: personal services income and personal services businesses. 

Cases

Domestic Property Developments Pty Ltd ATF the Dals Property Trust v FCT [2022] AATA 4436 – Actively marketed rental property not used only for input tax supplies 

The AAT has ruled that a taxpayer property developer was not entitled to a refund of what it contented was erroneously paid GST, finding that: 

  • a newly constructed unit leased by the taxpayer had ceased to be used ‘only’ for making input taxed supplies when it was first actively marketed for sale in the course of the taxpayer’s enterprise, such that the unit’s sale was not an input taxed supply; and 
  • while another unit had been used only for making input taxed supplies (such that its sale was therefore input taxed), the taxpayer was unable to prove that it had not passed on GST to its purchasers and was therefore denied a refund. 
 

Dermatis v FCT [2023] AATA 13 – Decision not to remit shortfall interest charge not reviewable

The AAT has confirmed it did not have jurisdiction to review the Commissioner’s refusal to remit shortfall interest charge pursuant to section 280-170 of Schedule 1 to the TAA 1953 as it was less than 20% of the relevant tax shortfall amount. 

Legislation

Exposure draft legislation: Reform to deductible gift recipient registers

Treasury has released exposure draft legislation and explanatory material regarding deductible gift recipient (DGR) register reform. If implemented, the proposed changes would transfer four categories of DGRs currently administered by portfolio agencies (such as the Register of Cultural Organisations) to the ATO. The changes are intended to make the administration of all DGR categories consistent, reduce red tape and simplify the application process for organisations seeking DGR status. 

Discussion paper released: Survivors of child sex abuse to access offenders’ super

Treasury has released a discussion paper containing an overview of two draft proposals that will enable survivors of child sexual abuse to access offenders’ superannuation to fulfil unpaid compensation orders. 

 

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