Daily Archives: February 22, 2017

VN Railway Pty Ltd & Anor – taxpayer appeals decision to impose 75% penalty for intentional disregard of the law [24]

The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Tracey J in VN Railway Pty Ltd & Anor v FCT [2013] FCA 265. In that case, the Federal Court upheld a 75% tax shortfall penalty imposed on the trustee of a family trust operating independent supermarkets after ruling…

*Southgate Investment Funds Limited v DCT – Broadbeach Properties did not prevent a stay of execution on a grant of summary judgment [25]

The ATO Tue 9.4.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in Southgate Investment Funds Limited v DCT [2013] FCAFC 10. In that case, the Full Court unanimously allowed a company taxpayer’s appeal from an earlier court decision denying the taxpayer a stay of execution (in relation to a grant of…

ATO View on Binetter v DCT – s264 notice valid and did over-ride the privilege against self-incrimination, notwithstanding foreseeable Part IVC proceedings [26]

The ATO on Thursday 11.4.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in [2012] FCAFC 126 and the subsequent special leave application by the taxpayer to the High Court. The Full Federal Court had dismissed the taxpayer’s appeal from part of the judgment in Binetter v DCT (No 3) [2012] FCA…

TD 2013/D2 – Earnings for Defense Force personnel whilst on leave from active duty overseas, through accident or illness, remain exempt under s23AG [27]

This Draft TD, issued Wed 24.4.2013, states that foreign earnings derived by Australian Defence Force (ADF) members from a period of leave as a result of an accident or illness that occurred while deployed overseas by the ADF as a member of a disciplined force are exempt under section 23AG of the ITAA 1936. The Draft says…

TD 2013/D3 – support payments to subsidiaries not deductible under s8-1 (capital) or under the ‘black hole’ provision in s40-880 [28]

This Draft TD, issued on Wed 24.4.2013, states that support payments made by a parent entity to its subsidiary are not deductible under s 8-1 since the support payments are capital in nature for the purposes of para 8-1(2)(a). Further, the Draft indicates that such payments are included in the cost base and reduced cost base…

Denlay v FCT – Wickenby: Garnishee notice to taxpayers’ super fund quashed – decision to issue notice because of ‘Wednesbury’ unreasonableness [13]

The Federal Court has granted the application of husband and wife taxpayers under the Administrative Decisions (Judicial Review) Act 1977 and s 39B of the Judiciary Act 1903 to quash the Commissioner’s decision to issue a garnishee notices pursuant to s 260-5 of Sch 1 of the Taxation Administration Act 1953 to the taxpayers’ superannuation fund, which the…

*Large corporates and multinationals to be forced to disclose tax payable figures [9]

A Treasury discussion paper released on Wed 3.4.2013, proposes that large corporate entities would be required to disclose tax payable. The Assistant Treasurer said the discussion paper follows the Government’s earlier announcement that it intends to change the tax laws to improve the transparency of Australia’s business tax system. A copy of the discussion paper…

State approved providers of ‘ethics classes’ in public schools to be eligible for DGR status – as an alternative to religious education [10]

The Assistant Treasurer announced on Mon 8.4.2013, that providers of ethics classes in government schools will be eligible for deductible gift recipient (DGR) status. He said the Government will amend the tax laws to expand the DGR categories to include organisations approved by State or Territory governments to provide ethics classes in public schools as…

*Tax deductions for work-related self-education expenses to be capped at $2,000 – per Treasurer’s announcement [11]

The Treasurer has announced that the Government would introduce a $2,000 cap on tax deduction claims for work-related self-education expenses per person from 1 July 2014. The announcement was made “as part of a package of reforms to make a down-payment on the National Plan for School Improvement”. Mr Swan said that without a cap, “it’s possible…

*Government to increase non-primary production income threshold from $65k to $100k for Farm Management Deposits [12]

The Government has announced enhancements to the Farm Management Deposits (FMD) scheme to assist farmers and support the rural sector as a part of its Farm Finance package. It said it will increase the non-primary production income threshold from $65,000 to id=”mce_marker”00,000 so that more primary producers can access the scheme and diversify their income…