Daily Archives: February 28, 2017

*Re The Trustee For The Confidential Trust and FCT – AAT has no power to stay operation of objection decision [21]

The AAT has held it has no power to stay the operation or implementation of the Commissioner’s objection decision which disallowed a trustee’s objection to the assessments issued to 2 minor beneficiaries of a trust. The beneficiaries of the trust are the trustee’s 2 daughters. On 11 March 2013, the Commissioner issued a notice of assessment to…

*Re ACN 092 138 442 Pty Ltd (In Liquidation) and FCT – Director to obtain leave before commencing proceedings against objection decision [20]

In a procedural matter, the AAT has held that a director of the taxpayer (in liquidation) lacked authority to commence proceedings before it in the name of the taxpayer, but that steps may be taken, which must be pursued in a timely manner, to remedy the lack of authority. In doing so, the AAT made no orders.…

*Re Perry and FCT – Work-related deduction claims unsubstantiated, so penalty for “recklessness” confirmed [19]

In a decision handed down on Fri 20.9.2013, the AAT affirmed the Commissioner’s decision refusing a taxpayer’s claim for tax deductions for the relevant year. In doing so, it also affirmed the imposition of 50% penalty on the shortfall amount for “recklessness”. The taxpayer’s tax return for the 2011-12 tax year was lodged with the…

*Re Harrison and FCT – UK pension lump sums assessable as ordinary income [18]

The AAT has affirmed the Commissioner’s decision that lump sum payments received by a taxpayer that was connected to a pension paid by the UK Government was ordinary income in her hands and therefore should be assessed accordingly. The taxpayer was in receipt of a pension from the UK Government. The taxpayer’s pension was connected…

*Re Gerbic and FCT – Taxpayer liable for CGT on sale of property: no exemption [17]

The AAT has affirmed the Commissioner’s decision to assess a taxpayer in 2008 on 50% of the net capital gain arising from the sale of a town-house. It did so on the basis that the interest in the town-house was not held on trust for his son, and the principle place of residence exemption did…

*Re Chemical Trustee Limited and Ors v FCT and Chief Executive Officer, AUSTRAC – Wickenby cases: AAT orders release of FOI documents and further review [16]

In a Project Wickenby matter, the AAT has ordered that certain documents be released to the taxpayers and that the Commissioner conduct a further review of his position and determine what further documents should be released to the taxpayers. The AAT said the proceedings were applications for review of decisions made in respect of requests…

*Re Beiruti and FCT – AAT had no jurisdiction to review the ATO’s refusal to give a credit for PAYG deducted, and refused an extension to review [15]

In a decision handed down on Thur 5.9.2013, the AAT has refused a taxpayer an extension of time in which to seek a review of an objection decision made by the Commissioner, concerning disallowance of a credit for withheld PAYG and other expenses. In relation to his 2011 tax return, the Commissioner had disallowed the…

*Re Russell and FCT – Self-education expenses and work-related expenses claims denied for lack of documentation [14]

The AAT has affirmed the Commissioner’s decision denying a taxpayer’s deduction claims for work-related expenses, self-education expenses, and depreciating assets, for the 2002 to 2010 income tax years. The taxpayer, who worked as a network engineer, claimed deductions for self-education expenses and work-related expenses. The latter mainly consisted of home office occupancy and running expenses.…

*Re AP Energy Investments Limited and FCT – Foreign company not liable for CGT on sale of shares in Aust mining company – principal asset test failed [13]

The AAT has ruled that a Chinese company, which made a capital gain of some $4m in the 2007 income year, when it sold 75% of its 21.4% shareholding in an Australian company (“Abra”), was not taxable on that gain. Abra carried on a business of mining exploration and development in Australia. The decision to…

*Re S J Buller Pty Ltd and FCT – WET: taxpayer was an associated producer; rebates denied [12]

The AAT has affirmed the Commissioner’s decision to deny a taxpayer wine producer rebates under the WET regime for the March 2010 and June 2010 quarters and impose a 25% shortfall penalty. It did so on the basis that the taxpayer was an associate producer of a related third party. The taxpayer was a producer of rebatable wines for…