Birchstone Legal Group

Happy new financial year! What’s new in the from last month? 🤓

The High Court has granted the Commissioner special leave to appeal the Full Federal Court case of Bendel.

The ATO has released a tax determination on the application of Part IVA to certain early stage innovation company investment arrangements. It has also updated its PCG on the CM&C test of company residency.

The Federal Court has held that FBT applies to non-cash benefits provided to directors of a family trust. In relation to state taxes, the NSW Tribunal has found that foreign surcharge land tax applied in respect of a trust, notwithstanding that foreign persons were prevented from being beneficiaries of the trust, on the basis that the ‘no amendment’ requirement was not satisfied.

See this week’s Birchstone Brief for these and other recent developments.

📎 https://go.birchstone.com.au/month-end-27-June-2025

What’s new in the tax world? 🤓

The proposed Parlimentary sittings for 2025 have been released.

In Charles Apartments Pty Ltd v FCT, the Federal Court held that a payment made pursuant to an intragroup loan was not deductible as interest and was instead properly characterised as a payment under a guarantee.

See this week’s Birchstone Brief for these and other recent developments.

🔗

Birchstone Brief for the weeks ended 16 May and 23 May 2025 - Birchstone Legal Group The Department of the Prime Minister and Cabinet has released the Proposed Parliamentary sitting dates for 2025. Both Houses are due to next sit from 22 July to 24 July 2025.

Herdy's Ultra? Dan said 'team bonding,' I said 'bet.' These bibs are sending mixed signals though. 🥴

What’s new in the tax world in February 2025? 🤓

The Full Federal Court has handed down its decision in Commissioner of Taxation v Bendel [2025] FCAFC 15 holding that UPEs are not loans for Division 7A.

Other interesting cases include:
DJG Consulting Pty Ltd as Trustee for the David Gerrans Family Trust and FCT [2025] ARTA 84 - where the Tribunal refused to remit reckless penalties in relation to PAYG withholding obligations, despite another entity in the taxpayer's group complying with those obligations; and
New Country Developments Pty Ltd and Senior Revenue Consultant as Delegate of the Commissioner of State Revenue [2025] WASAT 9 - where the Tribunal found that nominal WA duty did not apply under s.118 (relating to bare trustees) and s.116 (relating to transfers to a beneficiary).
The ATO has also released new guidance on the application of Part IVA to early stage innovation company arrangements and an extension of time to apply for a director identification number.

Finally, the date for the 2025-26 Federal Budget has been released.

See this week’s Birchstone Brief for these and other recent developments.

🔗 https://go.birchstone.com.au/bb-february