Daily Archives: February 22, 2017

*Southgate Investment Funds Limited & Ors v DCT – Taxpayer wins right to have refusal to grant stay of execution re-heard [10]

The Full Federal Court has unanimously allowed a company taxpayer’s appeal and held that decision of the Court at first instance (Kenny J) in DCT v Hua Wang Bank Berhad (No 2) [2010] FCA 1296 had miss-carried (that decision was to grant summary judgment for $9.7m in tax debts against the company and to deny it…

*FCT v Macquarie Bank Limited & Anor (Mongose) – Pt IVA: Commissioner loses appeal on gain from sale of shares after consolidation – no tax benefit [11]

The Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision in Macquarie Bank Limited v FCT [2011] FCA 1076. In that case, the Federal Court had held there was no “dominant purpose” of seeking to obtain a “tax benefit” under Pt IVA of the ITAA 1936 from the sale of shares by…

*Yazbek v FCT – individual can an amendment outside the 2-years limit, under the ‘beneficiary of a trust’ qualification, despite being only a discretionary beneficiary and the amendment not being as a beneficiary [12]

The Federal Court has dismissed a taxpayer’s appeal from the decision in AAT Case [2012] AATA 477, Re Yazbek and FCT in which the AAT held that the taxpayer was at all relevant times a beneficiary of a trust [for the purpose of qualification (d) to s170(1), item (1) of the ITAA36]. The taxpayer argued…

Donoghue v FCT – Injunction granted to prevent Commissioner using certain documents [13]

The Federal Court has granted a taxpayer an interlocutory injunction to prevent the Commissioner from making use of certain information obtained without the taxpayer’s consent. The taxpayer engaged a law student and a firm of lawyers that was associated with the law student to provide advice relating to his personal and family financial matters. The…

Macquarie Bank Limited v FCT – Taxpayer fails to prevent Commissioner issuing 5 years amended Overseas Banking Unit assessments [14]

The Federal Court has dismissed a taxpayer’s application for interlocutory injunctive relief that sought to restrain, until further order, the Commissioner from issuing amended assessments to the taxpayer. The taxpayer claimed that the Commissioner was going to apply, retrospectively, a changed view on the law relating to Overseas Banking Unit expense allocations. The Court said…

Legislation update: Australia – India DTA; Federal Circuit Court Consequential Amendments; Customs Amendment

Bills Pass Lower House – All Three The following Bills were all passed by the House of Reps on Wed 6.2.2013, without amendment and now move to the Senate: International Tax Agreements Amendment Bill 2012 – The Bill proposes to give the force of law in Australia to the Protocol to amend the DTA between…

Committee recommends passing 2012 Tax Bill No.6 with changes for in-house fringe benefits, limited recourse debt and rebates for medical expenses etc.

The House of Reps Standing Committee on Economics has completed its inquiry into the proposed amendments to the tax treatment of in-house fringe benefits, limited recourse debt and rebates for medical expenses, among other changes, contained in the Tax Laws Amendment (2012 Measures No 6) Bill 2012. The Bill is currently before the House of…

*Part IVA and transfer pricing amendment Bill introduced [3]

The Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 was introduced in the House of Reps, on Wed 13.2.2013. It contains the following amendments: of the ITAA 1936 to ensure its effective operation as the income tax general anti-avoidance provision. The Government said some recent decisions of the Full Federal Court…

*Tax Bill (No 1) 2013 introduced: Loss carry-back; SMSF asset acquisitions; FBT and airline benefits: etc [4]

The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 was introduced in the House of Reps on Wed 13.2.2013. It contains the following amendments: : the Bill proposes to amend the income tax law to allow corporate tax entities that have paid tax in the past, but are now in a tax…

Consolidating dependency tax offsets – draft legislation released [5]

Treasury Wed 13.2.2013, released draft legislation to implement the Government’s 2012-13 Federal Budget announcement that it would consolidate 8 of the existing dependency tax offsets into a single, streamlined offset with respect to the 2012-13 and future income years. From 2012-13 onwards, the new Dependant (Invalid and Carer) Tax Offset (DICTO) will only be available…