A taxpayer operating as a sole trader (a tiler) has been unsuccessful before the AAT in satisfying the burden of proving that amended income tax and GST assessments, plus penalties, were excessive. The assessments increased his income tax liability by some $21,500 and his GST payable by some $7,500, together with 50% shortfall penalties for…
The AAT has held that a taxpayer was not entitled to a deduction for work-related car expenses to transport essential equipment from his home to his work. The taxpayer was a train guard for the Rail Corporation New South Wales. He had lodged an objection against his 2010 assessment (out of time but accepted by…
The Commissioner has been successful before the Federal Court in obtaining a freezing order against the first respondent up to 26 June 2014, at which time a directions hearing was to be held. Likewise, the other respondents were restrained from disposing of or diminishing the value of any assets they held on behalf of the first respondent…
The Federal Court has refused a taxpayer’s request for an extension of time to file an application for judicial review under the Administrative Decisions (Judicial Review) Act 1997. Following an audit of the taxpayer’s tax affairs, the Commissioner in August/September 2011 issued default assessments for the 2006 to 2009 income years (and an amended assessment…
A taxpayer has been unsuccessful before the Federal Court in seeking relief under s 39B of the Judiciary Act 1903 and ss 5 and 6 of the Administrative Decisions (Judicial Review) Act 1977. The “decision” or proposed “decision” which was challenged by the taxpayer related to an interim audit report prepared and issued by the ATO…
A taxpayer who had lodged an application for a private ruling in respect of the operation of the consolidation rules before amendments were made to those rules (relating to rights to income), which adversely affected the situation for the taxpayer on consolidation. The taxpayer however had not got an actual answer to the ruling request…
The Minister for Justice Thur 31.7.2014, announced that the Government has formally established the Fraud and Anti-Corruption (FAC) Centre located in the Australian Federal Police (AFP) headquarters, with the recent signing of a Commonwealth multi-agency Memorandum of Understanding. The Minister noted the FAC Centre brings together the ATO, ASIC, Australian Crime Commission, Australian Customs and Border…
The OECD has released the full version of a new global standard for the exchange of information between jurisdictions to help governments tackle tax fraud and tax evasion. The Standard for Automatic Exchange of Financial Account Information in Tax Matters calls on governments to obtain detailed account information from their financial institutions and exchange that…
On 15 July 2014, the OECD Council approved the contents of the 2014 Update to the OECD Model Tax Convention. The Update will be incorporated in a revised version of the Model Tax Convention that will be published in the next few months. The 2014 Update does not include any results from the ongoing work on the…
Treasury is seeking submissions on Australia’s future tax treaty negotiation program. Australia’s 44 bilateral tax treaties generally follow the OECD Model Tax Convention on Income and on Capital, with some variations that are designed to protect Australia’s domestic interests, eg provisions designed to protect Australia’s taxing rights over the exploitation of Australian natural resources. Public…