The following points highlight important federal tax developments that occurred during July 2019.
Each month, these developments are considered in detail in the 'Tax News' column of Taxation in Australia, the Institute's member journal.
Taxable payments reporting system
The Commissioner has made a legislative instrument that exempts entities that meet specific criteria from having to prepare and lodge reports with the Commissioner relating to payments to third-party contractors for courier, cleaning, information technology, security, investigation, surveillance or road freight services (TPRS 2019/1).
Commissioner’s general administration powers
The Commissioner has issued a revised practice statement that outlines (for the purposes of ATO staff) issues that arise in relation to his powers of general administration (GPA), including the circumstances in which the Commissioner’s GPA may be properly exercised (PS LA 2009/4).
Employees guide for work expenses
The Commissioner has released a guide called “Employees guide for work expenses” which is designed to help employees when deciding whether their expenses are deductible, and what records are needed to be kept to substantiate them.
Division 7A: UPE sub-trust arrangements
The Commissioner has extended the operation of PCG 2017/13 to deal with the situation where, in accordance with PS LA 2010/4, investment option 1 has been validly adopted on, or before, 30 June 2013 to place funds representing an unpaid present entitlement under a sub-trust arrangement on a seven-year interest-only loan with the main trust and the principal of the loan is not paid when the loan matures in the 2020 income year.
Dwellings acquired from deceased estate: CGT exemption
A final practical compliance guideline has been released which considers the exercise by the Commissioner of his discretion to extend the twoyear period after death to settle the disposal of a dwelling and retain the CGT main residence exemption (PCG 2019/5).
Convictions for tax offences quashed
The AAT has held that a taxpayer had discharged the onus of proving that certain land was acquired by it in 2005 on the basis that the margin scheme was applied, despite no direct written evidence ( The trustee for the Seabreeze Estate Unit Trust and FCT  AATA 1395). See item 7.
CGT main residence exemption
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Members, these developments are covered in detail in your August journal. You can access the journal online here.
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