Illegal phoenix activity – Coy assets sold for $20k, resold for $176k, spent on private liabilities, $1m deficiency on liquidation – 1 suspended jail term, one good behaviour bond, both banned for 5 years as directors

Allan Raad of Wentworthville, NSW and his brother-in-law Yousef Joseph Bazouni of Sandringham, NSW, have been convicted and sentenced in the Downing Centre District Court after pleading guilty to ASIC charges concerning a breach of director’s duties and the fraudulent removal of company assets. ASIC had alleged that on 2 July 2011 in Sydney, NSW…

LCR 2018/D7 – Draft ‘Companion Ruling’ for the recently passed 80% passive income cap for ‘base rate entities’ taxed at the new lower corporate tax rate (currently 27.5%)

On Fri 24.8.2018, the ATO released Draft Law Companion Ruling LCR 2018/D7 which considers the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018, after the Bill passed both houses (on 23.8.2018) and ahead of it obtaining Royal Assent (on 31.8.2018) – see related Tax Technical Article. This law implements the 80% passive income…

Mangat v CofT – Doctor’s Options to subscribe for IVF shares not acquired at least 12 months before cancellation – 50% CGT discount not available

The AAT has confirmed that a taxpayer was not entitled to a discount capital gain in relation to the cancellation of 150,000 shares that were held by her in a company pursuant to an employee share scheme (ESS). At issue was the required 12 months, since ‘acquisition’, for CGT purposes, had gone by, when the…