The Federal Court has upheld a 75% tax shortfall penalty imposed on the trustee of a family trust operating independent supermarkets after ruling that it was open for the AAT to find that the taxpayer had “intentionally disregarded” its tax obligations under s 226J of the ITAA 1936. The Court dismissed the taxpayer’s appeal from AAT…
In a very lengthy decision (over 400 pages), the AAT has affirmed that over $20m deposited into the private bank account of 2 taxpayers in the 2005 to 2008 income years (inclusive) from a private company, of which they were directors, comprised assessable income of the taxpayers in the form of either unfranked dividends, deemed…
The AAT has held that certain share trading activities by a Vanuatu incorporated company were Australian-sourced, but that the taxpayer had discharged its onus of demonstrating that an assessment relating to the 2007 year was excessive. The taxpayer was incorporated in Vanuatu in December 2003. Its members were Vanuatu residents associated with the accountancy practice known as…
The AAT has held that a taxpayer had his permanent place of abode outside Australia for the income year ended 30 June 2008 and was therefore a non-resident for tax purposes for that year. The taxpayer, who had migrated to Australia from New Zealand in 1985, had commenced employment with an engineering company in Abu Dhabi in December 2007.…
The AAT has affirmed the objection decision of the Commissioner that a company engaged in activities involving, broadly, solar tubing technology was not entitled to the R & D tax offset under s 73I of the ITAA 1936 in the 2004 income year (where it had originally claimed an offset of $225,000) and in the 2005…
The AAT has dismissed a taxpayer’s appeal against income tax and GST assessments issued following an ATO audit of her florist business. The taxpayer conducted a GST-registered florist business and lodged BASs for the monthly tax periods from 1 July 2007 to 30 June 2008. In her 2008 tax return, she reported “Cost of sales” for the business of…
The AAT has determined that it has the jurisdiction to review an objection decision made by the Commissioner in relation to both amended assessments of primary tax and assessments of penalties issued to husband and wife taxpayers who were beneficiaries of a family trust. This was despite the fact that their objections to the assessments…
At The Tax Institute’s 2013 National Convention in Perth on Fri 15.3.2013, the Assistant Treasurer gave a speech on the Government’s attempts to counter profit shifting and international tax avoidance. He said that, left unchecked, profit shifting and international tax avoidance was “a threat to our sovereign right to tax and to raise the revenue…
The Attorney-General, Mr Dreyfus, on Mon 18.3.2013, announced that the Government would establish a Treasury-led working group to examine the tax treatment of native title payments and how they can better benefit Indigenous communities now and into the future. Mr Dreyfus said the Tax Laws Amendment (2012 Measures No 6) Bill 2012 [scheduled to be…
Treasury has released the March 2013 update of its Forward Work Program – Consultation on Tax (Including Superannuation) Measures. It sets out the timetable for current and proposed consultation on tax and superannuation measures. Measures listed include those dealing with PAYG monthly instalments for large companies, GST refund restrictions, non-cash benefit rules, bad debts and related party…