FCT v Oswal (No 6) – Court finds mortgages void as being an alienation of property with intent to defraud creditors (including the Commissioner as it turned out)

Tax Month - July 2016

The Federal Court has found for the Commissioner in holding that mortgages granted by the first respondent over 2 valuable residential properties in suburban Perth in favour of the second respondent, Mercury Services Limited, were void pursuant to s 89(1) of the Property Law Act 1969 (WA) (PLA) as being an alienation of property with intent to defraud…

FCT v Oswal (No 6) – Court finds mortgages void as being an alienation of property with intent to defraud Commissioner

Tax Month - July 2016

The Federal Court has found for the Commissioner in holding that mortgages granted by the first respondent over 2 valuable residential properties in suburban Perth in favour of the second respondent, Mercury Services Limited, were void pursuant to s 89(1) of the Property Law Act 1969 (WA) (PLA) as being an alienation of property with intent to defraud…

Re XLPZ and FCT – Tax debt not released because the ‘serious hardship’ was independent of the $58k tax debt (there were $300k of other liabilities beyond the value of his assets)

Tax Month - July 2016

An individual taxpayer has been unsuccessful before the AAT in seeking to be released from tax debts pursuant to s340-5 of Sch 1 to the Taxation Administration Act 1953. The taxpayer had tax debts of some $58,000 which arose because of early access to his self-managed super fund (SMSF). The AAT said it was the taxpayer’s…

DCT v Panayi  – DPN for $370,000 upheld: Defendant found to be a director and then other defences failed (despite bad health)

Tax Month - July 2016

In a lengthy decision, the NSW District Court has upheld a director’s penalty notice (DPN) for $369,904.86. The taxpayer worked for a family freight and logistics business. The defendant claimed his role in this business was only to oversee the maintenance of the fleet of trucks and to supervise the mechanics working at a workshop,…

Re SRBP and Tax Practitioners Board – Tax agent cautioned with sanctions instead of having registration terminated

Tax Month - July 2016

The AAT has decided to replace the Tax Practitioners Board’s decision to terminate an applicant’s tax agent registration with a caution accompanied with specific sanctions after taking into account the applicant’s history of personal and mental health problems. In October 2014, the Board found the applicant had failed to comply with 3 sub-sections of the Code of…

Millar v FCT – Back to Back loan from Aust’n Super Fund to Hua Wang Bank (Vanda Gould) to the taxpayers was treated as a ‘sham’ and taxed as premature payment of preserved benefits

Tax Month - July 2016

On Monday 4.7.2016, the Full Federal Court, by majority, dismissed husband and wife taxpayers’ appeal from the October 2015 decision of Griffiths J in Millar v FCT [2015] FCA 1104 in a case concerning a property loan arrangement with a Samoan bank being a sham. The original AAT proceeding (Re Morrison and FCT [2015] AATA 114) was a review of a…

Re H J International Trade Group Pty Ltd and FCT – milk bar and student home stay taxpayers assessed on under-reported income tax and GST based on records and industry averages together with penalties

Tax Month - July 2016

The AAT has affirmed the Commissioner’s income tax and associated penalty decisions imposed on a taxpayer. However, it also decided to vary the GST and associated penalty decisions to reflect a reduced GST liability as conceded by the Commissioner before the hearing. The taxpayer operated a milk bar and contended it also operated a homestay…

Shord v FCT – taxpayer held to be a ‘resident’ and taxable on foreign source income without qualifying for s23AG exemption or foreign tax offsets

Tax Month - July 2016

A taxpayer has been unsuccessful before the Federal Court in appealing against the decision in Re Shord and FCT [2015] AATA 355. In that case, the AAT had affirmed the Commissioner’s objection decisions and found: that the taxpayer was a resident of Australia for the 2006 to 2011 income years, despite the taxpayer’s claim that he…