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Baullo v Commissioner of State Revenue [2023] VCAT 1164: Beneficiary Loans, Land Transfer Duty, and Discretionary Trusts
The VCAT ruling of Baullo v Commissioner of State Revenue [2023] VCAT 1164 (Baullo), has reaffirmed the position of the State Revenue Office (SRO) that forgiving beneficiary loans in relation to a distribution of property from a discretionary trust to a beneficiary will prohibit utilisation of the exemption to land transfer (stamp) duty afforded by section 36A of the Duties Act 2000 (Act).
Family Farm Transfer Exemption – Transferring the Family Farm to related Parties
Farmland is often the single most valuable asset for a farming family. The farm provides a base from which to operate the farming business and the capital value of the farmland typically increases in value over the long term.
Stamp duty exemption - transfer from discretionary trust to beneficiary
Ordinarily, land transfer duty (stamp duty) is paid by the transferee at the time of the transfer of dutiable property, such as real property, unless an exemption to stamp duty is applicable.
The ATO’s Crypto Tracking and Data Collection Processes
The Australian Tax Office (ATO) has released a statement outlining their priorities ahead of the end of financial year 2021/22, with crypto-assets being one of these priorities due to its rising popularity.
Draft Land Tax Ruling - Land Tax Exemption for Charities
On 15 February 2022, the Victorian State Revenue Office (SRO) published ruling LTA-009 (Draft Ruling) that replaced the previous rulings of LTA-004 and LTA-005.
The consultation process closed for comments and submissions on 15 March 2022. We will provide updates when the SRO releases their final ruling in due course.
Employee Share Schemes – Another Report Supports Further Reform
Although Employee Share Schemes (ESSs) are appealing on the surface, they are undermined by complex legislation and confusion regarding upfront or deferred taxation.
Tax expert, Rob Warnock, bolsters Harwood Andrews’ commercial practice
Harwood Andrews is pleased to announce that as of 1 July 2021, preeminent tax lawyer
Rob Warnock will join the Business Law Team in Geelong.
The ATO’s Stance on Capital Gains, Discretionary Trusts and Foreign Residents
In the decisions of Greensill (Thawley J) and Martin (Steward J), the Federal Court found in favour of the Australian Taxation Office (ATO) that section 855-10 of the Income Tax Assessment Act 1997 (ITAA 1997) did not disregard a non-taxable Australian property capital gain distributed to a foreign beneficiary of an Australian discretionary trust.
Employee Share Schemes – Budget Changes Should Boost Participation
Attracting and retaining high performing employees can be key to ensuring the long-term success and growth of a business, which many Australian business have found challenging as a result of COVID-19.
Victorian State Budget – What You Need To Know
The Victorian State Government last week released its 2021-2022 Budget. Although aimed at a broad cross-section of the State, the Budget’s revenue raising measures primarily targeted landowners, property developers and gender exclusive clubs.
How to approach business structures and restructures in 2021
COVID-19 has taught us to expect the unexpected. Australians are generally positive people with a ‘she’ll be right’ attitude to all aspects of life including in business. However, COVID-19 has caused many people to question that attitude and as a result many are now understanding the importance of planning for the worst-case scenario.
Wind farm turbines not fixtures for land tax
The Supreme Court of Victoria has determined that wind farm infrastructure (such as wind turbines, towers and wind-monitoring buildings) were chattels, rather than fixtures.
The Allocation of Profits by Professional Firms: Further Hurdles to be Overcome for IPPs
The Australian Taxation Office (ATO) has released guidelines which set out the ATO’s proposed compliance approach to the allocation of profits by professional firms. The Draft Practical Compliance Guideline PCG 2021/D2 Allocation of professional firm profits – ATO compliance approach (Draft PCG) make substantial changes to the former guidance that the ATO suspended in late 2017.
Victory for taxpayers: High Court denies payroll tax appeal
The decision made by the NSW Court of Appeal in Chief Commissioner of State Revenue v Downer EDI Engineering Pty Ltd [2020] NSWCA 126 was an unsatisfactory outcome for the NSW chief Commissioner of State Revenue’s (Commissioner).
Cryptocurrency still under the watchful eye of the ATO
With bitcoin prices skyrocketing, investors becoming aware of the instability of fiat currencies (AUD, GBP, USD etc), and low interest rates stemming from the economic downturn of COVID-19, the world of cryptocurrency is once again filling up social media feeds.
ATO “Next 5,000” Tax Performance Program – Our Top Tips
For some time, the Australian Taxation Office (ATO) has been issuing notices for a compliance program focussed on the “Next 5000” private groups in Australia (Next 5000 Tax Performance Program).
No CGT benefit for small businesses primarily collecting rent
The Australian Taxation Office (ATO) has issued Taxation Determination TD 2021/2 that contains the ATO view that companies that carry on a business in a general sense but whose only activity is renting out an investment property will be unable to benefit from the small business capital gains tax (CGT) concessions in relation to that property.
New regulations for Boarding School Accommodation
From 28 June 2021, school boarding premises will need to be registered with the Victorian Registration and Qualifications Authority (VRQA), and meet certain minimum standards.
All DGRs to be registered charities
The Commonwealth Treasury has released exposure draft legislation amending the Income Tax Assessment Act 1997 (Cth) (ITAA).
Changes to Land transfer (Stamp) duty in Victoria from 25 November 2020
The Victorian State Budget for the 2020-21 year has a focus on “people” and economic stimulus in order to assist the economy recover from the Covid-19 pandemic lockdowns.
The budget focused on promoting investment into housing and planning, rebuilding the state and its economy.