August 2024 Monthly Tax Update: Latest Tax Law Changes

In the August 2024 edition of Andersen in Australia’s Monthly Tax Update, we provide recent legislative updates and outline the latest developments in the areas of corporate tax, individual tax, indirect tax and international tax. We also examine the ATO’s recent activities, publications, rulings and other guidelines and discuss the latest Australian tax cases.

Key Sections

Legislation Updates

Following our last update, the following Bills have received assent and are now law.

Social Services and Other Legislation Amendment (More Support in the Safety Net) Bill 2024

The Social Services and Other Legislation Amendment (More Support in the Safety Net) Bill 2024 received assent as Act No 66 of 2024 on 9 July 2024. The Act:

• increases the maximum rates of Commonwealth rent assistance by 10 per cent (from 20 September 2024)
• increases jobseeker payment for certain recipients who have a partial capacity to work of 0 – 14 hours per week (from 20 September 2024), and
• improves access to paid work for recipients of carer payment, by increasing flexibility in the circumstances a person may temporarily cease providing care without losing qualification (from 20 March 2025).

Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024

The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 received assent as Act No 67 of 2024 on 9 July 2024. The Act contains tax measures that, among others:

• make changes to the location and producer tax offsets;
• amend the general anti-avoidance provisions and clarify the meaning of ‘exploration for petroleum’ in the Petroleum Resource Rent Tax Assessment Act 1987;
• amend the income tax law to clarify that mining, quarrying or prospecting rights cannot be depreciated until they are used and the circumstances in which the issue of new rights over areas covered by existing rights lead to income tax adjustments;
• provide legal certainty that payments of certain personal advice fees by a superannuation trustee from the member’s interest in the fund are deductible from the superannuation fund’s assessable income, and
• make technical corrections in relation to the indirect value shifting and transfer pricing rules.

Other Legislation Update

Draft legislation to extend the amendment period for small and medium businesses

Treasury has released exposure draft legislation on a 2023–24 Budget measure to extend the current 2-year amendment period to 4 years for income tax returns of small and medium businesses.

The draft Bill proposes an amendment that would allow the Commissioner to amend an assessment of a small or medium business entity at the taxpayer’s request, within 4 years from the date the Commissioner notifies the taxpayer of the assessment. This amendment will introduce a new item 3A to the table in section 170(1) of the ITAA 1936.

The application for an amendment must be in the approved form and given to the Commissioner before the expiry of the 4-year period.

The additional time is intended to reduce the administrative and financial burden on these taxpayers who wish to self-amend their tax returns, as well as on the ATO. The current 2-year period is considered too short, as it has led to an increase in taxpayers having to enter the objections and appeals processes with the Commissioner. 

The Commissioner can only amend these assessments to implement the decision based on the taxpayer’s application. Consequently, the provisions will not permit the Commissioner to make amendments related to any issues not covered in the application. This limitation ensures that taxpayers have sufficient certainty, as the 4-year period applies only to the particulars specified in the taxpayer’s application.

The 4-year amendment period is proposed to apply to assessments in respect of income years starting on or after 1 July 2024, provided the assessments were issued after the first 1 January, 1 April, 1 July or 1 October after the relevant amending Bill is enacted.

Comment on the draft legislation was closed on 9 August 2024.

For further details, please refer to the Treasury website.

Online selling platform data-matching program

The ATO has registered a gazette notice (C2024G00406),  that it will start acquiring Australian sales data from online selling platforms for 2023–24 through to 2025–26. Data will be collected from online marketplaces where registrants have sold goods or services totaling $12,000 or more in the relevant financial year. The ATO will engage with selected data providers on a case-by-case basis to obtain the data stored in their systems. This data may include client identification details for both individuals and entities, as well as account information.

The data collected under the program will be used in conjunction with other information held by the ATO to identify, assess, and address high-risk activities. The ATO will conduct further investigations if discrepancies are found between online sales data and the information declared in a seller’s tax return.

Similar data-matching programs have been conducted since 2008, dating back to the 2004–05 financial year. Online selling data has been used to deliver compliance outcomes for registration, income tax and GST from taxpayer audits, voluntary disclosures and lodgments.

For further information, please refer to the ATO website.

OECD

OECD update on international tax reforms

The OECD has issued a new report outlining recent advancements in international tax reform since February 2024. Key developments are detailed in the OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors.

Two-Pillar Solution (BEPS 2.0)

Progress continues on the Two-Pillar Solution to Address the Tax Challenges Arising from Digitalisation of the Economy. This framework was agreed upon by most OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) member countries in October 2021.

Pillar One

Inclusive Framework members have achieved near-universal consensus on the Multilateral Convention to implement Amount A. Efforts are ongoing to finalize the framework for Amount B. Amount A refers to the coordinated reallocation of taxing rights over profits of the largest multinational enterprises under Pillar One. Amount B refers to a framework for enhanced tax certainty and rule simplification relating to transfer pricing for in-country baseline marketing and distribution activities.

Pillar Two

Approximately 40 jurisdictions have either enacted or are preparing to implement the global minimum tax effective from 2024 or 2025. A first high-level signing ceremony of the Multilateral Convention to facilitate implementation of the Subject-to-Tax-Rule (STTR) will be held in Paris on 19 September 2024. The STTR is a treaty-based mechanism enabling a source country to “tax back” income when taxing rights have been relinquished under a tax treaty and the income is subject to a low tax rate (below 9%) in the residence country.

Other work

Steady progress continues across the four BEPS Minimum Standards – Action 5 on harmful tax practices, Action 6 on tax treaty abuse, Action 13 on country-by-country reporting and Action 14 on mutual agreement procedure. The report also covers advancements in tax transparency, on tax and development, tax administration, and consumption taxes.

The following reports were also delivered with the OECD Secretary-General Tax Report:

• Taxation and Inequality
• Strengthening International Tax Transparency on Real Estate – From Concept to Reality
• Bringing Tax Transparency to Crypto-Assets – An Update
• Beneficial Ownership and Tax Transparency – Implementation and Remaining Challenges

The OECD Secretary-General Tax Report was prepared ahead of the third meeting of G20 Finance Ministers and Central Bank Governors held under the Brazilian G20 Presidency from 25 to 26 July 2024. The G20 members have agreed a comprehensive standalone Tax Declaration reflecting its commitment to continued international tax cooperation and achievements to date. The final Communiqué of the meeting also reiterates members’ commitment to the swift implementation of the Two-Pillar Solution. For further information, please refer to OECD website.

Other updates

TPB updates proof of identity process for practitioners

The Tax Practitioners Board (TPB) has revised its guidance on the one-time proof of identity process for individual tax practitioners.

The TPB employs the Document Verification Service (DVS), a national online system enabling authorized agencies to verify certain identity documents. All registered individual tax practitioners must complete this one-time proof of identity process. Those who have not yet done so will need to fulfill this requirement during their next registration renewal.

The updated guidance specifies that individuals have up to 8 attempts to verify 2 identity documents online via the DVS. If they are unable to verify their documents online after 8 attempts or choose not to consent to the online DVS check, they must complete their proof of identity by uploading their documents to the “Do not consent” page with their renewal or registration application through “My Profile”. The option for in-person verification through Australia Post has been removed.

For further information, please refer here.

TPB consultation on guidance for new Code obligations

The Tax Practitioners Board (TPB) is consulting on 2 draft information sheets on 3 of the 8 new obligations introduced under the Tax Agent Services (Code of Professional Conduct) Determination 2024.

Draft Information Sheet TPB(I) D54/2024 offers guidance on Section 15 of the Determination and Section 50-20 of the Tax Agent Services Act 2009 concerning false or misleading statements made to the TPB or Commissioner. It covers the application of the requirements under Section 15, reporting obligations for breaches by registered tax practitioners, and the consequences of non-compliance.

Draft Information Sheet TPB(I) D55/2024 provides guidance on managing conflicts of interest and maintaining confidentiality in dealings with the government as outlined in Sections 20 and 25 of the Determination. It explains how these obligations apply, the consequences of failing to meet them, and compares them with similar obligations for Australian financial services licensees under the Corporations Act 2001 against similar obligations under the Tax Agent Services Act.

The 8 new obligations in the Determination commenced on 1 August 2024, however the government has announced that it will insert a transitional rule into the Determination regarding implementation of the new obligations. The transitional rule will provide firms with up to 100 employees until 1 July 2025 and larger firms with more than 100 employees until 1 January 2025 to bring themselves into compliance with these new obligations, so long as they continue to take genuine steps towards compliance during this period.

The TPB has also published frequently asked questions about the new obligations. Consultation on further draft guidance for the remaining Code obligations will be undertaken progressively over the coming months. The TPB Communiqué provides an indicative timeline for the release of guidance on the new Code obligations.

Comments are invited on the 2 draft information statements by 3 September 2024.

For further information, please refer here.

Consultation on foreign resident capital gains tax rules commences

The government has commenced consultation on proposed changes to capital gains tax (CGT) and withholding on capital gains tax for foreign residents.

Draft legislation on foreign resident capital gains withholding tax increase

As part of the 2023–24 Mid-Year Economic and Fiscal Outlook, the government announced a measure to increase the integrity of the foreign resident capital gains withholding (FRCGW) regime.

The Treasury Laws Amendment Bill 2024: Foreign Resident Capital Gains Withholding Payments proposes to increase the FRCGW rate for relevant capital gains tax (CGT) assets from 12.5% to 15%.It would also remove the current $750,000 threshold before which withholding applies for transactions involving either taxable Australian real property or an indirect Australian real property interest that provides company title interests.

These changes will apply to acquisitions of relevant CGT assets made on or after the later of 1 January 2025 and the commencement of this measure.

The government is seeking stakeholders’ views on the effectiveness of the exposure draft legislation and accompanying explanatory material implementing this measure.

Consultation on the draft bill closed on 5 August 2024.

For further information, please refer here.

Consultation paper on foreign resident capital gains tax changes

The government announced a measure in the 2024–25 Budget to strengthen the foreign resident CGT regime.

This measure aligns the treatment for non-residents more closely with the tax treatment that already applies to Australian residents. This means Australia can tax gains on assets that have a close economic connection to Australian land or natural resources – in line with OECD standards and international best practice. Foreign residents will be required to notify the ATO prior to the transaction occurring when they dispose of certain high-value assets, so the ATO can make sure that tax is appropriately paid in Australia.

The amendments apply to CGT events commencing on or after 1 July 2025.

The consultation paper is seeking stakeholder views on specific implementation details of the Budget announcement.

Consultation closes on 20 August 2024.

For further information, please refer here.

ATO Rulings & Activity

ATO consultation on implementation of Pillar Two global and domestic minimum tax.

The ATO has invited interested parties to join its new special purpose working group to support its implementation of the new global and domestic minimum tax in Australia.

According to the ATO, through consultation, the working group will seek feedback on administrative aspects of the implementation of this new measure, including:

• the design of two new Australian tax returns, keeping in mind domestic requirements for an approved form to enable assessment and collection of a Top-up Tax:

• Australian income inclusion rule and undertaxed profits rule tax return (AIUTR)
  • Domestic minimum tax return (DMTR)

• the resources, systems and processes that multinational businesses are considering, or may already have in place, in response to the announced measure, including system builds and services provided by software designers; and

• how the ATO can support implementation through public advice and guidance, and co-designing client engagement approaches.

Members of the working group should be able to contribute relevant knowledge and expertise, and will be expected to maintain confidentiality and act in line with the ATO consultation framework.

Expression of interests was closed on 9 August 2024.

For further details, please refer to the ATO website.

ATO thin capitalisation rules web guidance updated

With the recent royal assent of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2024, the ATO has updated its Thin Capitalisation web guidance to help entities apply the new thin capitalisation rules.

The amendments to the thin capitalisation rules include:

• the introduction of new earnings-based tests (including a third-party debt test) for certain classes of entities,
• replacing the existing asset-based rules for those entities.

The amendments also provide a new integrity provision (also known as ‘debt deduction creation rules’) that will apply to debt creation schemes.

The new thin capitalisation rules apply to tax assessments for income years commencing on or after 1 July 2023, while the debt deduction creation rules will apply to assessments for income years starting from 1 July 2024.

According to the ATO, ‘general class investors’ will be subject to one of three new tests:

• Fixed ratio test – which limits net debt deductions to 30 percent of earnings before interest, taxes, depreciation, and amortisation (EBITDA) measured on a tax basis;
• Group ratio test – based on the proportion of group net third party interest expense to group EBITDA; or
• Third-party debt test – which replaces the arm’s length debt test and limits debt deductions other than those relating to third party debt interests that meet certain conditions.

‘Financial entities’ will continue to be subject to the existing safe harbour test and worldwide gearing test, however the ATO states that they can opt for the new third party debt test.

Entities that are excluded from the new debt deduction creation rules – as the previous rules will continue to apply – are:

• authorised deposit-taking institutions (ADIs);
• securitisation vehicles; and
• Australian plantation forestry entities.

For further information, please refer to the ATO website.

Draft taxation determination on s 99B trust income and ‘resident taxpayer’ tests

The ATO has set out its preliminary views on factors relevant in applying the “hypothetical resident taxpayer tests” in s 99B(2)(a) and (2)(b) of ITAA 1936. Section 99B(1) generally includes amounts of trust property received by resident beneficiaries in their assessable income, that have not been previously taxed, subject to several exceptions. 

Section 99B(2)(a) and (2)(b) exclude certain amounts of trust property paid to, or applied for the benefit of, such beneficiaries from being assessed under s 99B(1) where:

• an amount represents corpus of the trust, except to the extent attributable to amounts derived by the trust estate that, if they had been derived by “a taxpayer being a resident”, would have been included in the assessable income of that taxpayer for the year (s 99B(2)(a)), or
• an amount represents an amount that, if it had been derived by a taxpayer being a resident, would not have been included in the assessable income of that taxpayer of a year of income (s 99B(2)(b)).

Draft Taxation Determination TD 2024/D2 sets out the Commissioner’s view that, for the purposes of these hypothetical resident taxpayer tests, the only characteristic of the hypothetical taxpayer is that they are an Australian resident. It cannot be assumed that the hypothetical taxpayer has any other characteristics. Accordingly, concessions that are only available to specific classes of resident taxpayers (such as the CGT discount available under Div 115 of ITAA 1997) are not taken into account when determining whether an amount would or would not be included in the assessable income of a hypothetical taxpayer.

When applying the hypothetical resident taxpayer tests, it is important to consider the circumstances that led to the relevant amount being in the trustee’s hands. The draft determination provides examples, such as a capital gain from a pre-CGT asset distributed to a resident beneficiary, suggesting that this distribution could be excluded since it would not be included in the assessable income of a hypothetical taxpayer. Only facts and events related to the character of the amount at the time it was acquired are relevant to the hypothetical resident taxpayer test. Specifically, the Commissioner deems that actions taken by the trustee or events affecting the trustee after the acquisition of an asset are not relevant.

The ultimate source of the amount paid or applied to the beneficiary is considered when determining whether it is “attributable to” amounts that would be taxable to a hypothetical resident taxpayer under section 99B(2)(a) or whether it “represents” an amount that would not be taxable if derived by the hypothetical resident taxpayer under section 99B(2)(b). This means that the test involves tracing the source of the amount to make the necessary determination.

When finalised, the determination is proposed to apply both before and after its date of issue. Draft TD 2024/D2 was issued alongside Draft Practical Compliance Guideline PCG 2024/D1 (see details below).

Comments on draft TD 2024/D2 can be submitted until 28 August 2024.

ATO compliance approach

The ATO’s compliance approach considers 2 common scenarios where s 99B may apply, namely, where distributions or benefits are provided from a non-resident deceased estate, and where the provision of trust property is on commercial terms.

An arrangement will be considered low risk if it meets the various criteria outlined in the guideline, including that the total value of trust property received from a non-resident deceased estate does not exceed A$2 million and is received within 24 months of death. The ATO will not have cause to dedicate compliance resources to consider the application of s 99B for these arrangements beyond confirming that low risk features are present.

Arrangements that do not meet the criteria outlined in draft PCG 2024/D1 are not necessarily subject to s 99B, however the ATO may engage with such taxpayers to better understand the arrangement. An arrangement would not be considered low risk if it has elements of a contrived nature that seek to enable a taxpayer to fall within the compliance approach or was entered into to enable one resident beneficiary to provide a benefit to another resident beneficiary.

When finalised, the guideline is proposed to apply both before and after its date of issue. Draft PCG 2024/D1 was issued alongside Draft Taxation Determination TD 2024/D2 (see details above).

Comments on the draft guide can be submitted until 28 August 2024.

ATO finalises guidance on how non-arm’s length income rules interact with CGT provisions

The ATO has finalised a taxation determination (TD 2024/5) outlining its views as to how the non-arm’s length income (NALI) and capital gains tax provisions interact to determine the amount of statutory income that is non-arm’s length income.

Specifically, the determination provides guidance as to how to calculate the amount of statutory income that is NALI where a superannuation fund makes a capital gain as a result of non-arm’s length dealings. The determination provides a number of practical examples to demonstrate these calculations.

The determination also outlines various alternative views on how the NALI and CGT provisions interact and why these alternative views are not supported.

The determination applies to years of income commencing both before and after its date of issue, being 17 July 2024.

It was previously issued in draft form as TD 2023/D1.

ATO guidance on deductibility of payments to trustee risk reserve by super funds

The ATO has issued Taxation Determination TD 2024/6 which sets out the Commissioner’s view on the deductibility of payments made by the trustee of a superannuation fund to the trustee in its own capacity to establish or build a trustee risk reserve to address the risk of exposure to penalties under s 56 of the Superannuation Industry (Supervision) Act 1993 (SISA).

A payment by the fund to the trustee will not be deductible to the fund under s 8-1 of the ITAA 1997 where it is objectively determined on the facts that:

the trustee is charging the fund the amount for the purpose of building or maintaining a reserve to address the trustee’s risk because of the amendments to s 56 of the SISA (referred to as “additional risk reserve payments”), and

the amount is charged by the trustee as a lump sum or a number of lump sum instalments or an ongoing amount that is separate and distinct from its existing ongoing and recurrent charges for trustee services.

This is because the payments made by the fund are losses or outgoings of capital or of a capital nature and excluded under s 8-1(2)(a) of the ITAA 1997.

However, payments made by a superannuation fund to a trustee are deductible under section 8-1 if it is determined based on the facts that the payment is for trustee services, commonly referred to as “trustee fees.” These fees are ongoing and recurrent charges for the services the trustee provides to the fund, and they may be adjusted periodically according to the terms of the trustee’s engagement to reflect changes in the cost of services. If the superannuation fund incurs expenditure related to earning or producing exempt income or non-assessable non-exempt income, the fund must fairly and reasonably apportion the deduction in accordance with section 8-1(2)(c).

This determination applies both before and after its date of issue. It was previously released as Draft Taxation Determination TD 2023/D3 and a compendium has been issued on the feedback received on the draft ruling.

Self-review guide for GST classification of food and health products

The ATO has issued a self review checklist for small to medium businesses and self review guide for medium to large businesses on self-reviewing GST classification of food and health products.

The documents provide step-by-step guidance to entities on self-reviewing the GST classification of their supplies (such as products stocked, imported or produced) and assessing the robustness of their business systems, processes and controls in relation to GST classification. While use of the guides is not mandatory, the ATO encourages entities to regularly self-review GST classification, as well as relevant governing processes and controls.

The guide for medium to large businesses is targeted at the supplies listed. However, core elements identified as critical aspects of a GST product classification process (set out in s 2.1 of the guide) and the recommended better practice are applicable to all supplies where the application of an exempting GST provision under the GST Act is being considered.

Small business food retailers with turnover of $2 million or less may instead choose to use a simplified GST accounting method to account for their GST.

ATO internal guidance on collection and recovery of disputed debts

The ATO has revised its internal guidance on managing the collection and recovery of disputed debts. The updated Law Administration Practice Statement PS LA 2011/4 now provides clearer information on the ATO’s policy regarding disputed debts. It emphasizes the expectation that large businesses and certain high-net-worth group taxpayers with a disputed debt should either pay the debt in full or agree to a 50/50 arrangement.

A large business and wealthy group taxpayer for the purposes of this Practice Statement refers to a:

• member of a group with a turnover of greater than $250 million
• member of a private group with over $250 million in net assets, or
• significant global entity.

A 50/50 arrangement is an administrative agreement between the Commissioner and a taxpayer in which the taxpayer pays at least 50% of the disputed principal tax debt. In exchange, the Commissioner will defer the recovery of the remaining disputed debt under section 255-5 of the TAA 1953 and agrees to partially remit the General Interest Charge (GIC) that would otherwise apply.

Where a large business or wealthy group taxpayer with a disputed debt does not pay their debt in full or enter into a 50/50 arrangement, the ATO may take action to secure payment of the disputed debt before the dispute is resolved.

ATO practice statement on general administration of tax law updated

The ATO has refreshed a Practice Statement outlining the Commissioner’s general administration of the tax law, intending to better explain key concepts, and to clarify the escalation process for various types of decisions.

Law Administration Practice Statement PS LA 2009/4 has been renamed as “Decisions made by the Commissioner in the general administration of the taxation laws”  and includes various other changes, including removing most references to the Commissioner’s “power” of general administration, explaining that the general administration provisions in the law place, rather, a duty on the Commissioner. 

Erratum to personal services income and personal services businesses ruling

The ATO has issued an erratum to Taxation Ruling TR 2022/3, which deal with personal services income and personal services businesses, to correct a term from the personal services income rules used in Diagram 1 of the ruling.

The erratum applies from 23 November 2022.

Div 7A benchmark interest rate determination withdrawn

The ATO has withdrawn a tax determination setting out the Div 7A benchmark interest rate for the 2018–19 income year as its period of effect has passed.

Taxation Determination TD 2018/14 is withdrawn with effect from 11 July 2024, but continues to be binding on the Commissioner for the relevant period to which it relates.

Class rulings issued

Issue No.1	CR 2024/40 Silver Lake Resources Limited – scrip for scrip roll-over. This ruling applies from 1 July 2023 to 30 June 2024.
Issue No.2	CR 2024/41 Upper Yarra Community Enterprise Ltd – off-market share buy-back. This ruling applies from 1 July 2023 to 30 June 2024.
Issue No.3	CR 2024/42 Suncorp Group Limited – Suncorp Capital Notes 5. This ruling applies from 1 July 2023 to 30 June 2033.
Issue No.4	CR 2024/43 Technology Metals Australia Limited – scrip for scrip roll-over. This ruling applies from 1 July 2023 to 30 June 2024.
Issue No.5	CR 2024/44 Pharmx Technologies Limited – return of capital. This ruling applies from 1 July 2023 to 30 June 2024.
Issue No.6	CR 2024/45 Prestal Holdings Limited – return of capital and dividends. This ruling applies from 1 July 2023 to 30 June 2025.
Issue No.7	CR 2024/46 TASK Group Holdings Limited – scrip for scrip roll-over. The ruling applies from 1 July 2024 to 30 June 2025.
Issue No.8	CR 2024/47 McGrath Limited – scheme of arrangement and special dividend. The ruling applies from 1 July 2023 to 30 June 2024.
Issue No.9	CR 2024/48 Magellan Global Fund – exchange of Closed Class Units for new Open Class Units. The ruling applies from 1 July 2024 to 30 June 2025.

Other rulings issued

Issue No.1	Product Ruling PR 2024/12 Utmost Silk Life Plan – Singapore. It applies from 1 July 2024 to entities as specified in the ruling.
Issue No.2	Addendum to Product Ruling PR 2022/6 Tax consequences for a customer participating in CommBank Yello with the Commonwealth Bank of Australia. The addendum incorporates updates to the CommBank Yello terms and conditions, applicable both before and after its date of issue.

Latest Australian Tax Cases

• Superannuation – The AAT has held that jockeys who raced at racetracks operated by the Australian Turf Club were employees of that club for the purposes of the Superannuation Guarantee (Administration) Act 1992 (the SGAA). The taxpayer club thus had an obligation to pay superannuation contributions on the jockeys’ behalf. In particular, the AAT agreed with the Commissioner that the taxpayer was “liable” to make payments to jockeys of the kind described in s 12(8)(a) and rejected the taxpayer’s argument that s12(3) applied so as to render the owners and/or trainers of the horses to be the jockeys’ employer. [Australian Turf Club Ltd v FC of T 2024 ATC; [2024] AATA 2728, 30 July 2024.]

• Default assessments – The Federal Court has dismissed the taxpayers’ appeal from an AAT decision ([2023] AATA 2782) that upheld default assessments in which unexplained deposits and expenses in bank accounts had been attributed as the taxpayers’ taxable income. It found that the AAT had not erred in circumstances where contemporaneous evidence that the unexplained amounts were gifts or loans had not been provided. [Rusanov & Anor v FC of T & Anor 2024 ATC; [2023] FCA 777, 18 July 2024.]

• Agents and trustees – The Federal Court has rejected an appeal by a trustee in bankruptcy against the Commissioner’s determination that he was subject to s 254 of ITAA 1936 in relation to capital gains resulting from the sale of properties owned by the bankrupt. [Robson ATF Bankrupt Estate of Lanning v FC of T 2024 ATC; [2024] FCA 720, 4 July 2024.]