Question:
Tax Office lawyers sent to the “Eastern Front”
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
380 “deep law experts” maybe redeployed from the Tax Office Tax Counsel Network and Centres of Expertise to front line areas to lift the level of expertise in complex and international tax matters for field and advice staff.
Tax Office Second Commissioner Jennie Granger said that many more taxpayers had complex affairs with sole traders trading internationally over the internet and individuals moving in and out of Australia for work. International tax was no longer a speciality solely required for large multi nationals.
She further argued that the Tax Office “cannot apply commercial settlement approaches” when it is in the public interest to have the Courts clarify a point of law.
The Tax Office is developing a “Litigation Risk Indicator” and may progress to litigation more quickly if that indicator is high.
During 2011, 24,255 assessments resulted in objections and 767 of those objections resulted in appeals to the Tribunal or Courts. 97% of the appeals were initiated by taxpayers.
ATO law expertise: Evolution or Revolution? WTB 2012/55
