Monthly Archives: February 2017

*Re Upson and FCT – Default assessments for drug traffickers upheld – did not prove the assessments were excessive [24]

The AAT has upheld default assessments against husband and wife taxpayers. The AAT said that in 2010, the husband was found guilty of the offence of carrying on the business of unlawfully trafficking in a dangerous drug and was sentenced to imprisonment for 8 years. Part of the Crown case was that during those years…

*Hua Wang Bank Berhad & Ors v FCT – Companies were resident and liable to tax in Australia on sale of shares – reasons referred to law enforcement agencies to investigate money laundering & tax fraud (‘disgraceful’) [23]

In a lengthy decision handed down on Fri 19.12.2014, the Federal Court has found that 5 companies were resident of Australia and liable to pay tax here on the proceeds of the sale of shares in ASX listed entities. This case concerned appeals from decisions of the Commissioner disallowing 5 taxpayers’ objections to a number…

*John Holland Group Pty Ltd & Anor v FCT – Employee “fly-in fly-out” costs not deductible to employer [22]

The Federal Court has dismissed the taxpayers’ appeal and held that costs incurred in flying employees from Perth to Geraldton and back for a rail upgrade construction project were not deductible. The Commissioner contended that “fly-in fly-out” (FIFO) employees are undertaking another form of journey to and from work, it having long been established that…

*Allan J Heasman Pty Ltd v FCT – No deductions for contributions to employee welfare fund [21]

The Federal Court has dismissed a taxpayer’s appeal against an AAT decision that had confirmed the taxpayer, an automotive repair company, was not entitled to deductions for contributions paid to an off-shore “employee welfare fund” in the 1998 and 1999 years, nor resultant carried forward losses in the 1999 income year. The taxpayer and a…

*FCT v Qantas Airways Ltd – FBT: meaning of commercial parking station – Commissioner wins appeal [20]

In a decision handed down on Tue 9.12.2014, the Full Federal Court allowed the Commissioner’s appeal and found that the taxpayer was liable for FBT in relation to parking provided to employees at a Canberra airport. At the same time, it dismissed the taxpayer’s appeal in regards to FBT liabilities with regards to car parking…

*FCT v Macoun – Pension from World Bank employment assessable: Commissioner’s appeal allowed [19]

In a decision handed down on Thur 4.12.2014, the Full Federal Court unanimously allowed the Commissioner’s appeal from the decision in [2014] AATA 155 Re Macoun and FCT, effectively finding that an early retirement pension received by a resident taxpayer from the World Bank was not exempt from Australian income tax. The AAT had ruled…

*Nelson v FCT – No primary production business being carried on – taxpayer loses appeal [18]

The Full Federal Court has dismissed a taxpayer’s appeal against a Federal Court decision that he was not carrying on a business of primary production in the relevant years and was therefore not entitled to deductions in respect of improvements he made to the property. The taxpayer had appealed the decision of Collier J (in Nelson…

*Comr of State Revenue v Lend Lease Development Pty Ltd & Ors – Vic stamp duty: land transfers dutiable – Commissioner wins appeal [17]

The High Court on Wed 10.12.2014, unanimously allowed the Commissioner of State Revenue’s appeals from a decision of the Court of Appeal of the Supreme Court of Victoria in Lend Lease Development Pty Ltd & Ors v Comr of State Revenue [2013] VSCA 207 and held that the Commissioner was entitled to assess duty to…

*FCT v MBI Properties Pty Ltd – s135-5 GST increasing adjustment – Court holds that the purchaser of a reversion still makes supplies to the lessee [51]

The High Court handed down this important decision on 3 December 2014 and the reports about it can be found above under ‘Cases’, ‘High Court’ under the same heading. [LTN 234, 3/12/14]

BEPS – OECD releases 2 more discussion drafts for Actions 4 & 14 [15]

On 18 December 2014, the OECD released the following 2 discussion drafts on the BEPS Action Plan: Action 4 of the BEPS Action Plan – Interest deductions – comments are due by 6 February 2015. There will be public consultation on 17 February 2015. Action 14 of the BEPS Action Plan – Dispute resolution – comments are due by 16 January 2015. Public…