Monthly Archives: September 2016

Re Carr and FCT – the Commissioner issued default assessments for 2003 to 2006, totalling $2m, based on a loan from a bank and other unexplained deposits – the Taxpayer failed to prove that these assessments were excessive (only ‘meagre’ evidence)

A taxpayer has failed before the AAT to discharge the onus of proving that default assessments issued to him for the 2003 to 2006 income years for over $2m in taxable income were excessive. In doing so, the AAT emphasised that not only did the taxpayer have to prove that the assessments were excessive but, also,…

ACNC revokes the registration of 503 ‘double defaulters’ as charities – denying them access to Cwth tax concessions

On 26 August 2016, the national charities regulator: the Australian Charities and Not-for-profits Commission (ACNC), revoked the charity status of 503 charities, for failing to submit their Annual Information Statement after a warning and then failing to lodge for the second consecutive year. In other words, they were all ‘double defaulters’. The consequence of this is…

Tas Taxation: Miscellaneous Amendments Bill introduced – changes include: retrospective duty refund on matrimonial breakdown; land tax free thresholds for clubs; FHOG increase to $20k; 5 year amendment and refund periods and offset refunds and tax

The Tasmanian Treasurer introduced the Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 (Tas) into the Tasmanian House of Assembly on 25.8.2016. It proposes to amend the following Tasmanian Acts: the Payroll Tax Act 2008; the Duties Act 2001; the Land Tax Act 2000; the First Home Owner Grant Act 2000; and the Taxation Administration Act 1997. The key changes are as…

Oswal v FCT (No 6) – Taxpayers succeed in application for mediation of tax dispute, with the same mediator in a commercial dispute, as one might affect the other (despite mediation having failed and judgement being reserved in the tax case)

Husband and wife taxpayers (“the Oswals”) have been successful in their application before the Federal Court to seek mediation of their tax dispute with the Commissioner to be heard by a judge in Victoria who was also conducting the mediation of their commercial dispute with another party. The Court arrived at its decision essentially on…

Vic land rich provisions: Master Solutions Australia Pty Ltd v Comr of State Revenue – duty chargeable on acquisition of shares in land rich company

A taxpayer has been unsuccessful before the Victorian Civil and Administrative Tribunal in a matter concerning the land rich provisions under the Duties Act 2000 (Vic). The background facts were complex. Among other things, the Tribunal heard moneys were given by a sister to her brother and the taxpayer company was incorporated to purchase an investment property.…

Re Ogden and FCT – AAT imposes penalties reflecting Commissioner claim of recklessness and intentional disregard 

In Re Ogden and FCT [2016] AATA 32 the AAT found that the taxpayer, a salesman, had significantly over claimed deductions in the 2001 and 2012 income years which reduced his taxable income by some 30%. The AAT has now ruled that the taxpayer should be subject to administrative shortfall penalties that reflected the Commissioner’s claim that 50%…

Tas Duties Act: amendments introduced to replace ‘land-rich’ (60% of value) with ‘Landholder’ provisions ($500k land & 50% change for ‘private landholders’ and 90% for ‘public’) and legislated exemption for ‘Corporate Reconstruction and Consolidations’

On 17 August 2017, the Tasmanian Treasurer introduced the Duties Amendment (Landholder and Corporate Reconstruction and Consolidation) Bill 2016 was introduced into the Tasmanian House of Assembly. The Bill will amend the Tasmanian Duties Act to replace their ‘land-rich’ provisions with ‘landholder’ provisions and also to introduce their ‘corporate reconstruction’ exemptions into the Act (rather than have…

CR 2016/59 – rollover effect of Royal Dutch Shell’s ‘takeover’ of the BG Group on Australian employees who swapped their Employee Share Scheme interests in BG shares for ESS interests in Shell shares

On 17 August 2016, the Commissioner issued a class ruling on the Royal Dutch Shell plc takeover of BG Group plc, so far as it affected the Australian resident employees who held ESS interests under the BG Group employee share scheme (Participants). Broadly, these Participants had their ESS interests in the BG Group replaced by…