Daily Archives: February 22, 2017

Re LVR (WA) Pty Ltd & Anor and FCT – the case where the AAT previously copied the Commissioner’s submissions – new AAT member dismisses Commissioner’s subsequent application for the case to be dismissed [18]

The AAT has refused the Commissioner’s application to have assessment review applications by 2 taxpayer companies dismissed. The companies are LVR (WA) Pty Ltd and CZ Holdings Pty Ltd and they are involved in the purchase, subdivision and sale of residential lots. On 30 August 2007, the solicitor for both taxpayers filed with the Tribunal applications for…

Re Parrish and FCT – GST unpaid, taxable income understated and 75% penalties imposed for intentional disregard of the law [17]

The AAT has largely dismissed a taxpayer’s appeal finding that he had not reported and paid GST on taxable supplies, and had understated his taxable income in certain years, although it did find that some transactions should not form part of the taxpayer’s assessable income and GST liability. The taxpayer operated as a sole trader…

*DCT v Hua Wang Bank Berhad (No 4) – Summary judgment for GIC component maintained – subject to a stay [14]

Following a 2010 decision of the Federal Court, in DCT v Hua Wang Bank Berhad (No 2) [2010] FCA 1296, to grant summary judgment for some $39m against several companies, including penalties and GIC of over $2m, the taxpayers have been unsuccessful in their application to have the GIC component of the summary judgment dismissed.…

*FCT v Oswal – Commissioner obtains order for substituted service in respect of $186m debt [15]

The Federal Court has granted the Commissioner’s application for substituted service of a statement of claim on a taxpayer in relation to a tax liability of $186m for which the Commissioner had obtained judgment. The liability arose from an audit of the taxpayer and her husband and the taxpayer’s ammonia plant business that the taxpayer…

*FCT v Regent Pacific Group Limited & Ors – Freezing order granted over $12.7m capital gain made by foreign company and substituted service ordered [16]

The Federal Court has granted the Commissioner’s application for freezing orders against a taxpayer-company registered in the Cayman Islands that made a capital gain of over $12.7m from the sale of shares it held in a company engaged in mining operations in Western Australia. At the same time, the Court granted the Commissioner’s application for…

Investment Manager Regime: Government announces amendments that allow tracing through ‘feeder funds’ to establish minimum number of members [2]

The Government has announced details of amendments to the Investment Manager Regime (IMR) designed to improve its operation. The Government has also confirmed its intention to introduce the final element of the IMR into Parliament in the first half of 2013. Upon the introduction of the IMR in June 2012, the Government committed to consult with the…

TOFA stages 3 & 4 – drafts of further refinements to be retrospectively enacted to (most commonly) years commencing on or after 1 July 2010 [3]

The Government on Thur 10.1.2013, released for comment exposure draft legislation proposing to amend the TOFA tax rules, contained in Div 230 of the ITAA 1997. The Government said the changes, to clarify and refine the operation of certain aspects of the TOFA regime, are the outcome of ongoing monitoring of the implementation of the TOFA…

Public hearing into Tax Bill (No 6) 2012 re: native title exemption; disallowing capital allowance deductions through limited recourse debt not paid; and abolishing FBT in-house concessions through salary sacrificing [4]

The House of Reps Standing Committee on Economics will hold a public hearing on Wed 30.1.2013, at Parliament House in Canberra, into various provisions in the Tax Laws Amendment (2012 Measures No 6) Bill 2012. The hearing will cover 3 schedules in the Bill. Schedule 1 – proposes that native title benefits will not be…

Miscellaneous amendments to the tax laws – draft legislation released [1]

On 21 December 2012, the Government released for comment draft legislation concerning proposed miscellaneous amendments to the taxation laws. The amendments seek to ensure the law operates as intended by correcting technical or drafting defects, removing anomalies and addressing unintended outcomes. They include: an amendment to the ITAA 1997 to bring Australian residents within the definition of…

*Charities transferred from ATO to ACNC, which is asking charities to confirm their details [8]

The Australian Charities and Not-for-profits Commission (ACNC) has advised that it is now writing to inform all registered charities that their charity has been transferred from the ATO to the ACNC as of 3 December 2012, and to ensure they are aware that the ACNC is the new independent national regulator of charities. The ACNC is asking…