Category: Rulings
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Tax, super and pizza – the perfect combination
Pop quiz: Are pizza delivery drivers, who are required to use their own vehicle and are just paid per delivery, employees for the SGAA? ATO Interpretative Decision 2014/28 says they are. It concludes they are common law employees as the vehicle is not an “overriding factor when considering the arrangement as a whole.” This is…
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GST and motor vehicles and incentive payments and fleet discounts and runout models and…
One of the more interesting GST cases in recent times is AP Group Limited v. Federal Commissioner of Taxation (2013) 214 FCR 301; [2013] FCAFC 105; 2013 ATC 20-417. The case considered a series of payments made in the motor vehicle industry. Following this case the Commissioner has released his first GST ruling for 2014…
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Using imputations credits in an entity that does not have retained earnings
I have been asked a few times about using imputations credits in an entity that does not have retained earnings. Well there are a series of ways to do this. What people often try to do in the small end of town is to drop in some tax free income (often using section 23AJ or…
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“Excess GST”, “passed on”, “reimbursed”…
One of the best amendments to the GST Act ever was inserting a new Division, Division 142. This Division applies to tax periods starting on or after 31 May 2014. The object of Division 142 is to ensure that excess GST is not refunded if this would give an entity a windfall gain. In summary,…
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Employee Share Schemes – 4 simple rules…
The Commissioner has released a draft taxation determination on employee share schemes. While this draft determination relates a to employees who get a beneficial interest in a share subject to shareholder approval (this does not come within the employee share scheme rules) it is a great time to summarise the employee share scheme rules. Simply,…
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Gardening leave and personal services income
I never thought I would read the term “gardening leave” in a tax ruling but it is the main issue in draft taxation determination TD 2014/D15. The issue is whether the payment you get while you are on gardening leave (which if you don’t know is when you are told to go home, work in…
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Am I cool if I say Bitcoin?
I live in a town of less than 400,000 people and I just saw a Bitcoin ATM. I don’t know who to use it but how cool am I for living near a Bitcoin ATM… The Commissioner also is cool as he has released his thoughts on the tax treatment of Bitcoin transaction. In summary,…
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Divorce and Dividends #2
The Commissioner has released a fact sheet on when a payment or in specie transfer from private company to an individual under matrimonial proceedings can be a dividend or a deemed divided. I have discussed this before but there are some interesting examples in this fact sheet: First the simple case… Tim, Helene and a…
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Divorce and Division 7A
In Taxation Ruling TR 2014/5 the Commissioner confirms one of the most overlooked tax issues in marriage breakdowns. For example, if money or property is paid or transferred to a shareholder, if these payments are paid out of the private company profits, it will generally be an assessable dividend. In addition, money or property transferred…
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Luxury Cars and Hire Purchases
We now have a final ruling that is exactly like the draft – LCTD 2014/1 – so have a read about the draft
TaxRambling.com 