The High Court has refused the taxpayers special leave to appeal from the Full Federal Court decision in FCT v Normandy Finance and Investments Asia Pty Ltd & Ors [2016] FCAFC 180.

In its December 2016 majority decision, which now stands, the Full Federal Court allowed the Commissioner’s appeal and found that it was not open to the judge at first instance to find that payments of around $4 million made from a foreign company to its Australian subsidiary and other related companies were genuine loans (and not “shams”).

In particular, the majority found it was not appropriate to find that the taxpayers had discharged the onus of proving that assessments were excessive in circumstances where the taxpayers had made inconsistent (or “alternative”) arguments about the nature of the payments.

[LTN 156, 18/8/17; TM August]

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