Daily Archives: February 28, 2017

*AP Group Ltd v FCT – Interim Decision Impact Statement on vehicle incentive payments case [54]

The ATO on Fri 15.11.2013, released an Interim Decision Impact Statement on the Full Federal Court’s decision in AP Group Ltd v FCT [2013] FCAFC 105. The taxpayer had argued before the AAT that it had overpaid GST on the receipt of 5 categories of incentive payments. The AAT agreed with the taxpayer in respect…

*ATO interim view on MBI Properties case – No Increasing GST adjustment on sale of apartment GST-free (as no supply by purchaser of reversion) [53]

The ATO on Thur 21.11.2013, released an Interim Decision Impact Statement on the Full Federal Court’s decision in MBI Properties Pty Limited v FCT [2013] FCAFC 112. In that case, the Full Federal Court overturned an earlier decision and unanimously held that a taxpayer, that had purchased 3 residential apartments which were subject to leases,…

*Re Snugfit Australia Pty Ltd and FCT – Supply of sleep apnea product held to be GST-free as an item 82 night-time positioning equipment modification [52]

The AAT has set aside the Commissioner’s decision and held that the supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a medical aid. The taxpayer is registered for GST and supplies a sleep positioning product which assists users to control sleep apnea. The product is made…

Re Trustee for the Grewal Property Trust and FCT – GST input tax credits partially disallowed – claim that substantiation failed because of flooding [51]

The AAT has mostly affirmed the Commissioner’s decision in disallowing a taxpayer’s input tax credits claimed for the periods from 1 January 2007 to 30 September 2010. The taxpayer was the trustee of a trust that operated a motel business, was registered for GST and lodged relevant BASs. The Commissioner audited the taxpayer for the periods from 1 January 2007 to…

*Re Zarev and FCT – GST registration restored (computer repair business) but assessments stand – ITC private and/or no invoices [50]

The AAT has upheld GST and penalty assessments against a taxpayer but held that the taxpayer’s cancelled GST registration be restored. The taxpayer carried on what the AAT said might be called in layman’s terms a computer repair business. Following an audit of the taxpayer’s BASs for the period 31 March 2007 to 28 February 2011, the ATO issued…

*Professional Admin Service Centres Pty Ltd v FCT – No input tax credits for litigation funding provided to Nick Petroulias’ criminal defence [49]

The Federal Court has denied a taxpayer its claims for input tax credits for the periods between 1 July 2004 and 31 December 2006 on the basis of finding it had no entitlement to ITCs in respect of its payment of invoices for the provision of legal services in an individual’s defence of his criminal proceedings and in respect…

*MBI Properties Pty Limited v FCT – Commissioner seeks leave to appeal to the High Court that there was no increasing adjustment and no continuing supply from the purchaser of the reversion [48]

The Commissioner has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in MBI Properties Pty Limited v FCT [2013] FCAFC 112. The Full Federal Court had overturned an earlier decision and unanimously held that a taxpayer, that had purchased 3 residential apartments which were subject…

ATO vision for tax administration in the future [47]

In a recent address, ATO Second Commissioner Geoff Leeper gave an idea of what he said was the ATO’s 2020 vision. By 2020, he said: there will be a whole-of-government account, which will provide businesses with a complete view of their taxation relationship with the ATO; businesses will use software to keep their records; the…

*ATO considering using external company auditors to provide assurance to it on various tax matters [46]

The ATO has advised that it is exploring the concept of how basic assurance work might be done using existing external compliance-assurance processes (ECAP). As part of this project, the ATO says it will consider a new approach to risk-assurance work relating to some publicly listed companies. These would be taxpayers the ATO has categorised…

*Warning over scheme involving stealing information to create payment summaries and collect fraudulent refund [45]

The Australian Federal Police (AFP), the ATO and the Department of Immigration and Border Protection on Tue 12.11.2013, issued a warning against participating in recent taxation fraud schemes. The warning comes after the agencies recently disrupted an organised criminal syndicate allegedly stealing information and creating fictitious payment summaries to obtain fraudulent refunds. Five offenders allegedly…