Birchstone Brief for the week ended 21 April 2023

ATO Updates

Draft legislative instrument to clarify Commissioner’s power to remit penalties and interest

LI 2023/D10 proposes to modify the remission provisions in the TAA 1953 to remove any doubt that the Commissioner has power to continue his longstanding practice of making remission decisions:

  • for classes of entities; or
  • where a charge or penalty has not yet become due and payable (i.e. for future charges and/or penalties).  

Draft legislative instrument to modify work test

If registered, LI 2023/D11 will modify the operation of section 290-165(1A) of the ITAA 1997 to the effect that a person will satisfy the ‘work test’ (which was relocated to the ITAA 1997 from the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) in 2022) and therefore continue to be able to claim a deduction for personal superannuation contributions if they are an employee under the expanded meaning in sections 15A(2)-(10) of the SIS Act. 

ATO to commence data-matching program for ride sourcing platforms

The Commissioner has announced his intention to begin acquiring ride sourcing data to identify individuals that may be engaged in providing ride sourcing services during the 2022-23 financial year via a gazette notice

The data collected will be used to identify and inform ride sourcing providers of their tax obligations as part of information and education campaigns, and may also be used to inform the methodologies by which the ATO selects taxpayers for compliance activities. 



Messenger Media and Information Technology Pty Ltd v FCT [2023] AATA 752 – AAT affirms taxpayer lost entitlement to input tax credits

The AAT has held that a taxpayer company forfeited its entitlement to input tax credits by failing to lodge activity statements  or otherwise notify the Commissioner within the relevant time periods, and in so doing affirmed the Commissioner’s objection decisions to substantially the same effect. 


Taxpayer in the Konebada case appeals to Full Federal Court

The taxpayer has appealed to the Full Federal Court against the Federal Court’s decision in Konebada Pty Ltd ATF William Lewski Family Trust v FCT [2023] FCA 257 (covered in the Birchstone Brief for the week ended 31 March 2023). 



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