In the June edition of Cents & Sensibility, we noted that the Government made a significant and controversial announcement, proposing to introduce new changes to the income tax concessions available to participants in an employee share scheme (“ESS”), intending to apply to shares and rights acquired under an ESS on or after 1 July 2009.
On 5 June 2009, the Government released a consultation paper to modify the changes to the taxation of an ESS announced in the Budget.
The Tax Office has announced that it will conduct an ongoing share market transaction CGT data matching program.
The program will focus on the income tax obligations of taxpayers in relation to the disposal of shares. It will also focus on GST registration obligations of entities.
The AAT has upheld superannuation guarantee charge default assessments against a partnership for failing to make minimum superannuation contributions for an independent contractor operating within its business.
After considering the factors that indicate the existence of an employee/employer relationship, the Tribunal held that the contractor was an employee.
The Federal Government has introduced a Bill into Parliament, the amendments contained in the Bill include:
* increasing the aggregated research and development (R&D) expenditure cap from $1 million to $2 million for eligibility to the R&D tax offset, and
* making minor technical corrections to the taxation laws, including the small business CGT concessions, and FBT on donations
The Tax Laws Amendment (2009 Budget Measures No 1) Act 2009 has been enacted. The Act:
* amends the income tax exemption on foreign employment income; and
* temporarily reduces the superannuation government co-contribution; and
* reduces teh superannuation concessional contributions cap.
The amendments took effect from 1 July 2009.
In a recent case, the AAT held that a taxpayer, who was a director and shareholder in a private company, was liable to the deemed dividends provision for monies deposited in their bank account. The payments were debts due to the company. The company had directed its debtors to pay the money owed into the taxpayer's account.
Broadly, the deemed dividend provisions treat certain payments, loans and debt forgiveness by a private company to its shareholders (or their associates) to be assessable income in the form of unfranked dividends.
NOTE: A private company shoudl ensure that all payments are deposited to its own bank account.
The AAT has affirmed that the GST treatment of credit card surcharge fees, imposed by a taxpayer when payments are made by credit card, depend on the GST characterisation of the underlying supply.
Simply put, if an underlying supply is GST-free, the fee will be GST-free. Conversely, where the underlying supply is a taxable supply, the fee will attract GST.
The Tax Office has also released the following rates for the 2009/10 income year:
· CGT improvement threshold: $124,258
· Car depreciation limit and luxury car limit: $57,180
· Overtime meal allowance expenses: $24.95
· Benchmark interest rate for the deemed dividends provision: 5.75%
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