February/March Newsletter

Our latest eNewsletter includes information on the following topics:

ATO priority on settling case: The ATO places a high priority on resolving tax disputes early, including through reaching settlements where appropriate.

ATO develops work-related expenses risk profiles: The ATO has developed work-related expenses risk profiles to help it identify how work-related expense deduction amounts compare for similar taxpayers.

Onus on taxpayers to show no fraud or evasion: The Full Federal Court has confirmed that a taxpayer bears the onus of proving the absence of fraud or evasion where the Commissioner has issued an assessment “out of time” on the basis of “fraud or evasion”.

No disclaimer of trust interest: The AAT has ruled that a taxpayer could not argue she had disclaimed her interest in trust income because the disclaimer had not been raised in her original objection to the relevant amended assessments.

Admin penalties of 75% for failing to lodge FBT returns: The AAT has confirmed that 75% administrative penalties were rightfully imposed on several companies that failed to lodge FBT returns over a four-year period.

New ATO data-matching program: ride sourcing: The ATO has advised of a new data-matching program to identify individuals who may be engaged in providing ride-sourcing services.

Taxation ruling on commercial website deductibility: In TR 2016/3, the ATO sets out the tax deductibility of expenditure to set up and maintain a business website.

Taxation determination on deductions for bad debts: The ATO has issued TD 2016/19 stating that a trust beneficiary is not entitled to a deduction for an unpaid present entitlement that they purport to write off as a bad debt.

Taxpayers failed to prove that payments were “loans” : The Full Federal Court has found that several Australian companies had not proven the payments they received from overseas companies should not be considered income.

Bonsella News: Updates from the Bonsella Team.