TAG Tax


The South Australian Government has defiantly issued its Land Tax (Miscellaneous) Amendment Bill 2019 (Bill) for consultation manifesting a clear intent on the part of the Government to shut what some members of the Government have labelled “loopholes”, alter the way land tax is aggregated and introduce new bases for taxing certain types of trusts.

Read more: South Australian Land Tax Amendments – Are You Prepared?


The California Office of Tax Appeals (“OTA”) recently issued a decision finding that a nonresident sole proprietor, who performed all services outside of California but performed such services for California customers, was operating a “unitary” business and was therefore subject to California’s apportionment rules.[i]. The Bindley decision was rendered in late May 2019, but the OTA had until early September to decide whether the case would have precedential effect. On September 10, 2019, the OTA updated the decision’s status to precedential.

Read more: Nonresident Service Provider Subject to California Income Tax on Services Provided to California...


In the case of Soltani-Amadi v. Commissioner (Tax Court Summary Opinion 2019-19), the Tax Court (the Court) has found that an early 401(k) distribution used for a first-time home purchase is subject to the 10% additional tax that is charged to early retirement account distributions. The Court found that the exception to the 10% additional tax for first-time home purchases applies to distributions from IRAs, not other qualified plans such as 401(k) accounts.

Read more: 401(k) Distribution for First-Time Home Purchase Subject to 10% Additional Tax


Author: Cathy Bryant

In anticipation of the extension of the off-payroll rules to the private sector in April 2020, the Government has published its draft legislation together with explanatory notes, policy paper and a fact sheet.  You can access these documents here. The content of the draft legislation had been well-trailed during the consultations on the subject and there are no surprises in the publication.

For readers who are unfamiliar with the off-payroll rules, the effect is to shift the taxing point for the deduction of income tax and national insurance contributions from the personal services company of the individual who provides the services, to the organisation to which the services are provided.  This result only comes about where an individual is delivering services in such a way that if the contractual arrangements are disregarded, the individual would be deemed to be an employee of the organisation receiving those services.

Read more: Off-Payroll Rules for the Private Sector – Draft UK Legislation Published


As many in California already know, the State does not conform automatically to new Federal tax legislation, including the Tax Cuts and Jobs Act enacted on December 22, 2017 (“TCJA”). Instead, any conforming changes must be enacted by the California legislature. On July 1, 2019, California Governor Gavin Newsom (D) signed Assembly Bill 91 “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” (“AB 91”). That legislation selectively conforms to some of the provisions of the TCJA.

Read more: California Enacts its Version of Limitation on Business Losses for Non-Corporate Taxpayers