Monthly Archives: February 2017

*Lend Lease Development Pty Ltd & Ors v Comr of State Revenue – HC hearing – construction payments to vendor NOT ‘transfer’ consideration [26]

A Full Court of the High Court in Canberra on Tue 4.11.2014 also began hearing the Commissioner of State Revenue’s appeals against the Victorian Court of Appeal decision in Lend Lease Development Pty Ltd & Ors v Comr of State Revenue [2013] VSCA 207. The Court of Appeal had allowed the appeal of the 3…

*MBI Properties Pty Ltd v FCT – High Court hears appeal against decision that after the grant of a lease there is no ongoing ‘supply’ [25]

The further hearing of the Commissioner’s appeal against the Full Federal Court decision in MBI Properties Pty Ltd v FCT [2013] FCAFC 112 began on Tue 4.11.2014 before a Full Court of the High Court in Canberra. It is expected this will be the final day of the appeal. The Full Federal Court had overturned…

*DCT v Shears – Default judgment against taxpayer stands [24]

The NSW Supreme Court has rejected orders sought by a taxpayer to have a default judgment against him set aside. In essence, the case involved the taxpayer’s dispute with ATO about a default judgment entered against him. At issue was whether the default judgment was inconsistent with a previous decision of the Court, consideration of…

*Re The Trustee for the Confidential Trust and FCT – Minor trust beneficiaries not excepted persons and taxed at 45% [23]

The AAT has held that 2 minor beneficiaries of a trust were not excepted persons and the income that was distributed to them in the 2012 income year was not excepted trust income. The director of a trust settled a workers’ compensation claim in 2010 and received $400,000 under that settlement. He contributed the entire…

*Re Agius and FCT: Taxpayer not a resident, but derived Australian-sourced income [21]

The AAT has held that a taxpayer was not a resident of Australia for the years in question, but that he did derive Australian-sourced income. The taxpayer, Robert Agius, is a citizen of Vanuatu. The Tribunal noted that, in 2008, he was arrested in Perth by Australian Federal Police officers attached to Project Wickenby. He…

*Re Byrt and FCT – Proceeds from sale of mining tenements assessable as ordinary income [22]

The AAT has confirmed that a taxpayer who carried on a business of trading in coal and mineral exploration permits was assessable on $2.5m and the value of 40,000,000 shares as ordinary income under s 6-5 of the ITAA 1997 from the sale of mining tenements in the 2010 year. The taxpayer argued among other things,…

Re Farshidian and FCT – Dependant spouse tax rebate denied [20]

The AAT has rejected a taxpayer’s appeal and held that he was not entitled to the dependant spouse tax rebate in the 2011 year in respect of his fiancé. The Tribunal had to decide whether the taxpayer was entitled to claim the dependant spouse tax rebate under s 159J of the ITAA 1936 in his tax…

*Re Watson and FCT – No hardship release: circumstances of taxpayer’s own making [18]

The AAT has dismissed a taxpayer’s application to be released from a tax debt of some $52,000 that accrued over 4 income years and of which some id=”mce_marker”3,000 comprised GIC. The taxpayer argued that serious financial hardship would otherwise result and that bankruptcy would be a conceivable outcome and that, furthermore, there were no prospects…

Re Jones and FCT – Work-related expenses denied [19]

The AAT has rejected a taxpayer’s appeal against the disallowance of many expenses he claimed concerning his work as a relief teacher and a photography tutor. During the income year ended 30 June 2011, the taxpayer worked as a relief teacher on a mostly casual basis at 5 primary schools. He derived a salary of $43,295 in…

*DCT v Vasiliades & Ors – Asset freezing orders issued including against a trust in which it was alleged Mr Vasiliades had a contingent interest [17]

The Federal Court has issued asset freezing orders against several taxpayers in respect of which the Commissioner had issued amended assessments totalling almost $33m in tax debts, including penalties. The Deputy Commissioner sought orders freezing the assets of the first respondent (Mr Vasiliades) and against his wife, the second respondent (Ms Vasiliades), in respect of…