Daily Archives: February 28, 2017

*FCT v Ludekens – Commissioner wins appeal – civil penalties apply to “promoters” of tax scheme [28]

The Full Federal Court has unanimously allowed the Commissioner’s appeal and held that 2 persons were “scheme promoters” in terms of Div 290 of the TAA and therefore were liable for civil penalties. The matter involved 2 men who were marketers (and investors) in a managed investment scheme for which Product Ruling PR 2006/8 (the “2006…

FCT v Fabig – CGT scrip-for-scrip rollover: Commissioner’s appeal allowed – participation not “available on substantially the same terms” [27]

In a decision handed down on Wed 28.8.2013, the Full Federal court allowed the Commissioner’s appeal and held that the AAT, at first instance in AAT Case [2013] AATA 25, Re Dickinson and FCT; AAT Case [2013] AATA 26, Re Fabig and FCT, had erred in finding that the CGT scrip-for-scrip roll-over relief was available…

*Kelly v FCT – Full Court confirms assignment of partnership interest partly valid [26]

The Full Federal Court has unanimously dismissed the taxpayer’s appeal and the Commissioner’s cross appeal from the decision at first instance in Kelly v FCT [2012] FCA 423. At first instance, the Federal Court found that the assignment of partnership interests under a “Retirement Deed”, to a holding trust for the benefit of the partners’…

*August v FCT – profits on sale of commercial property assessable as ordinary income as profit making scheme [25]

The Full Federal Court has unanimously dismissed an appeal by husband and wife taxpayers and beneficiaries from the decision in August v FCT [2012] FCA 682 in which it was held that gains made on the sale of shopping centres and properties held by trusts where made on a revenue account and not a capital…

Pratt Holdings Proprietary Limited v FCT (No 2) – Full Court dismisses further grounds re no deduction for mining losses and penalties [24]

Following the decision of the Full Federal Court in Pratt Holdings Proprietary Limited v FCT [2013] FCAFC 82 (see above), the Court has now addressed a range of further issues left until after the determination of the primary tax issue: including that the trial judge erred in law in finding that the taxpayer or its…

*Pratt Holdings Proprietary Limited v FCT – No deduction for transfer of losses under mining provisions – taxpayer loses appeal [23]

In a decision handed down on Fri 2.8.2013, the Full Federal Court dismissed an appeal by a taxpayer against an earlier decision which had held that the taxpayer was not entitled to deduct a loss transferred to it from a related joint venture company in respect of a project to explore certain mining exploration tenements.…

Gashi v FCT asset betterment assessments stand [22]

The High Court has refused the taxpayers special leave to appeal from the decision of the Full Federal Court in Gashi v FCT [2013] FCAFC 30. In that case, the Full Federal Court found that an asset betterment assessment issued to husband and wife taxpayers should stand. It found that the taxpayers did not discharge…

*Bell v FCT stands – family trust failed the $5m test for small business relief (in part due to a mortgage interest offset account) [21]

The High Court has refused the taxpayer special leave to appeal from the decision of the Full Federal Court in Bell v FCT [2013] FCAFC 32. In that case, the Full Federal Court confirmed that a family trust failed the maximum net asset value test for the purposes of accessing the CGT small business concession…

*ACE Insurance Limited v Trifunovski & Ors stands – civil penalty for not treating insurance agents employees for SGC purposes [20]

The High court has refused the taxpayer special leave to appeal from the decision of the Full Federal Court in ACE Insurance Limited v Trifunovski & Ors [2013] FCAFC 3. The Full Federal Court has dismissed an appeal by a company against a decision of the Federal Court in ACE Insurance Limited v Trifunovski (No…

*FCT v Macquarie Bank Limited (Mongoose case) stands – consolidated company could not have a Part IVA ‘tax benefit’ on shares sold [19]

The High Court has refused the Commissioner special leave to appeal from the decision of the Full Federal Court in FCT v Macquarie Bank Limited [2013] FCAFC 13. The Full Federal Court had unanimously dismissed the Commissioner’s appeal and held that a member of a consolidated group was not subject to Pt IVA in respect…