Tax & Accounting Blog

Pt IVA anti-avoidance; CGT discount and non-residents; small business CGT concessions; GST enterprise

Accounting, Audit & Payroll, Blog, Business Tax, Estate, Gift & Property Tax, News, Tax June 26, 2013

The May 2013 edition of inTAX magazine features the following tax-related technical articles:

  • The changing face of Pt IVA — Matt Budge, Partner–Corporate Tax, PricewaterhouseCoopers, reflects on how Australia’s approach to tax avoidance has evolved, and discusses whether the proposed changes will affect the way in which clients approach business arrangements.
  • Foreigners don’t vote: the removal of the CGT discount for non-residents — Chris Evans (UNSW) and Gordon Cooper (Cooper & Co) take a closer look at the Government’s exposure draft legislation which proposes to remove the CGT discount for foreign resident individuals (including individuals who are beneficiaries of trust estates). Essentially any individuals who were a foreign resident or a temporary resident on 8 May 2012 and/or any time thereafter, will generally be entitled to no CGT discount or only a reduced CGT discount. The article examines how the proposed legislation would (or would not) work. [Chris Evans and Gordon Cooper are the authors of Cooper and Evans on CGT (4th edition) 2012, published by Thomson Reuters.]
  • Small business CGT concessions – net asset value test — The small business CGT concessions are intended to offer small business taxpayers a range of unique tax concessions. However, despite being targeted towards taxpayers that are typically less sophisticated, the rules are riddled with complexities that may not appear obvious at first glance. Clive Bird, Director-Tax, Moore Stephens, takes a look at the “maximum net asset value” test and also discusses the recent Full Federal Court decision in Bell v FCT [2013] FCAFC 32, which explored some of the nuances in the test.
  • Is your client carrying on an enterprise? — The concept of an “enterprise” is critical to the operation of the GST system. An entity cannot be registered for GST unless it is carrying on an enterprise. Further, any supply it makes cannot be a taxable supply unless it is made in the furtherance of its enterprise. Finally, an entity cannot claim input tax credits unless it makes an acquisition in the course of its enterprise. Clive Bird, Director-Tax, Moore Stephens, says that without understanding whether a taxpayer is carrying on an enterprise, it is impossible to determine a taxpayer’s GST position.

Tips:

  • Are you looking for ways to maintain your technical reading? Collect CPD points by reading Thomson Reuters inTAX magazine.
  • Do you want to write tax-technical articles, but don’t know where to start? Talk to Lisa Lynch, editor of inTAX magazine – direct tel: 02 8587 7643 or email: lisa.lynch@thomsonreuters.com.