Written by TaxCounsel Pty Ltd
The following points highlight important federal tax developments that occurred during June 2018.
Each month, these developments are considered in more detail in the Taxing Issues column of
Taxation in Australia, the Institute's member journal.
Underpaid super guarantee amnesty
On 24 May 2018, the government introduced the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 into parliament which provides for a one-off, 12-month amnesty (running from 24 May 2018) for historical underpayment of superannuation guarantee.
ATO: garnishee powers
The Inspector-General of Taxation has announced an investigation into the allegations made during the ABC Four Corners program (aired on 9 April 2018) regarding the use by the ATO of garnishee notices.
Car limit
The Commissioner has issued a determination which specifies that the car limit (under s 40-230 ITAA97) for the 2018-19 financial year is $57,581 (TD 2018/6).
FBT: car parking threshold
The Commissioner has released a taxation determination which states that the FBT car parking threshold for the fringe benefits tax year commencing on 1 April 2017 is $8.83 (TD 2018/7).
Luxury car tax threshold
For the 2018-19 financial year, the luxury car tax threshold is $66,331 and the fuel-efficient car limit is $75,526 (LCTD 2018/1).
Fraud or evasion
The Commissioner has revised the practice statement that provides guidance to ATO staff considering fraud or evasion in the context of the unlimited time periods which allow the Commissioner to amend assessments (or to seek the payment of indirect tax which has been underpaid) due to fraud or evasion (PS LA 2008/6).
GST withholding at settlement
The ATO has released information (“GST at settlement”) dealing with the new rules that, from 1 July 2018, require purchasers of new residential premises or potential residential land to withhold an amount from the price for the supply and pay that amount to the ATO on or before settlement.
The Full Federal Court has by majority (Moshinsky and Derrington JJ, Kerr J dissenting) upheld a decision of Tracey J that, despite what appeared to be otherwise, the Commissioner had not made a decision to remit a substantial amount of GIC payable by the taxpayer (Pintarich v DCT [2018] FCAFC 79).
GST: margin scheme valuation
The Federal Court (Steward J) has allowed an appeal by a taxpayer from a decision of the AAT in which the tribunal had held that the valuation relied on by the taxpayer for the purposes of applying the GST margin scheme did not satisfy the requirements for being an approved valuation as at 1 July 2000 that complied with MSV 2009/1 (Decleah Investments Pty Ltd and Prince Removal and Storage Pty Ltd as Trustees for the PRS Unit Trust v FCT [2018] FCA 717).
Departure authorisation certificate refused
The AAT has affirmed the Commissioner’s decision to refuse to issue a departure authorisation certificate to a taxpayer who was the subject of a departure prohibition order (Moltoni and FCT [2018] AATA 1348).
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