Sandbach v CofT – barrister’s Federal Court appeal struck out ‘for want of prosecution’ – more or less from the inception of the appeal

The Full Federal Court dismissed the taxpayer’s appeal from a decision of the Federal Court to dismiss his appeal (from an AAT decision) for want of prosecution. The Taxpayer was (and still is) a member of the Victorian Bar. The events were as follows: In 1986, the Taxpayer entered into a partnership to purchase an…

Vic Land Tax Surcharge – Treasurer’s guidelines gazetted for exemption of ‘absentee persons’ controlling interests in ‘absentee corporations’ and beneficial interest in ‘absentee trusts’

Victoria has enacted an ‘absentee’ owner land tax surcharge of 1.5% on land owned by ‘absentee persons’, which include: ‘absentee individuals’; ‘absentee corporations’ and ‘absentee trusts’. This is under the Victorian Land Tax Act 2005 (the ‘Act‘). Victoria has also enacted a land transfer duty surcharge, for foreign persons, with similar provisions, definitions and exemptions.…

Vic: Comr of State Revenue (Vic) v Danvest Pty Ltd & Anor – purchase of interest in land-owning partnership not liable for duty – partnership interest was personalty (not, relevantly, an ‘interest in land’)

The Victorian Court of Appeal has dismissed an appeal by the Commissioner of State Revenue and ruled that the sale and purchase of a partner’s interest in a land-owning partnership was not a “transfer of dutiable property”  because a partner’s interest in a land-owning partnership is not an ‘interest in’ an ‘estate in fee simple’ in…

Superannuation Taxation Integrity Measures – Outstanding LRBA balance added to Member’s total benefit & NALI extended to non-arm’s length payments

On 11 January 2018, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, released for public consultation draft legislation and a consultation paper entitled ‘Superannuation Taxation Integrity Measures’. [See her media release] On the same date, Treasury uploaded a consultation page, with following documents. A Superannuation Integrity Measures (Consultation Paper). Treasury Laws…

SMSF Association – statement on the significance of the $1.6m 2017 super annexation changes – new reporting requirements and effect on estate planning

The SMSF industry is still working through the far-reaching policy and legislative changes that took effect on 1 July 2017, says SMSF Association CEO John Maroney, in a media release issued on 12 January 2018. He says the changes – the most extensive in the past decade – fundamentally altered the superannuation landscape for SMSF…

Decleah Investments v CofT – appeals GST ‘margin scheme’ decision for pre-GST land – AAT held it was not an ‘approved valuation’

The taxpayer has appealed against the decision in Decleah Investments Pty Ltd and Anor as Trustees for the PRS Unit Trust and FCT [2017] AATA 2418. In that case, the AAT ruled that the taxpayer company had not provided an approved valuation for the purposes of the GST Act when applying the margin scheme to…

BXCD v CofT – taxpayer assessed on payments her companies made, purportedly, to gold suppliers that didn’t exist – taxpayer failed to discharge her onus that she received none of this money

The AAT has upheld default assessments totalling $8.9m based on cash withdrawals by the taxpayer from 2 companies conducting a “bogus” gold trading business. The taxpayer held 100% of the share capital in Company 1 and 45% of Company 2 (with the remainder held by her son: Aldo and not, with her other son: Danielle).…

Tyl v CofT – Truck driver’s ‘travel allowance expense’ claims reduced – problems with (difficult) s900-50 ‘reasonable’ substantiation exemption – relevant law explained and also ‘reconstitution’ of the Tribunal (worth a read)

The AAT has found that a truck driver’s work expense claims exceeded the reasonable amounts for the 2012 and 2013 years and he was therefore required to substantiate the expenses, but was allowed some deductions, under the Commissioners s900-195 discretion. It also upheld the Commissioner’s decision to impose a 25% shortfall penalty. In the 2012…

Delinquent Tax Debt disclosure to credit reporting bureaus – consultation on draft legislation and ATO’s administrative approach

On 11 January 2018, the Minister for Revenue and Financial Services released exposure draft legislation and explanatory material for public consultation that will authorise the Australian Taxation Office (ATO) to disclose business tax debts to credit reporting bureaus (CRBs) where the businesses have not effectively engaged with the ATO to manage their debt. The Government…