Monthly Archives: February 2017

*FCT & Darling and Anor – Commissioner wins appeal: documents filed in Family Court can be used for tax purposes [15]

The Full Court of the Family Court has ruled that the Court at first instance in FCT & Darling and Anor [2013] FamCA 118 wrongly applied its discretion to prevent the Commissioner from using certain documents filed in the Court for the purposes of an audit of one of the parties to the proceedings (and…

*FCT v Altnot Pty Ltd – CGT: maximum net asset value test and excluded assets [11]

The Federal Court has remitted a CGT matter back to the AAT for rehearing and determination in accordance with its reasons. The case concerned the maximum net asset value test (MNAV) and the CGT small business concessions. The taxpayer was a company that made a capital gain of over id=”mce_marker”m in selling its interest in…

*Re Hulsen and FCT – Serious hardship found, but release of tax debt refused as the release would not alleviate hardship and other debts paid ahead of tax [13]

The AAT has found a taxpayer was in “serious hardship”, but refused to exercise the Commissioner’s discretion to release him from his tax debts under Div 340 of Sch 1 to the TAA. The taxpayer had requested that the Commissioner release him from his tax liabilities amounting to around id=”mce_marker”03,000 for the period roughly 2008 to 2012.…

*Re Yerro and FCT – Car and travel expense claims disallowed [12]

The AAT has upheld the Commissioner’s decision to disallow a claim for car and travel expenses. The taxpayer was a Philippines national who came to Australia with his family on a Religious Worker Visa sub class 428. He was employed by a church in Queensland as an associate pastor, but he also worked as a…

*SPI PowerNet Pty Ltd v FCT – Electricity transmission business – deduction for State imposts refused – majority disallows appeal [10]

The Full Federal Court has, by majority (Davies J dissenting), dismissed a taxpayer’s appeal and held that payments it made to the State of Victoria re its acquisition of electricity assets were not deductible. The taxpayer had appealed from the decision of Gordon J in SPI PowerNet Pty Ltd v FCT [2013] FCA 924 which had held…

*FCT v Resource Capital Fund III LP – Liability on $58m gain made on sale of shares by foreign resident partnership – Commissioner wins appeal [9]

The Full Federal Court has allowed the Commissioner’s appeal against the decision of Edmonds J in Resource Capital Fund III LP v FCT [2013] FCA 363 which had held that a non-resident limited partnership (RCF) was not assessable on a capital gain of $58m it made on the sale of shares in a Australian company, St…

*Batchelor v FCT – Repaid deposit for purchase of a retirement village was not an assessable recoupment [8]

In a test case decision handed down on Thur 3.4.2014, the Full Federal Court has set aside a decision of the AAT that an amount received by a taxpayer was an assessable recoupment and remitted the matter to the Tribunal for re-determination. Four entities collectively formed a partnership, whose business included the acquisition, development and…

*Thiess v Collector of Customs & Ors – No recovery of mistakenly paid customs duty and GST – High Court dismisses taxpayer’s appeal [5]

The High Court on Wed 2.4.2014, dismissed a taxpayer’s appeal from the decision of the Qld Court of Appeal in Thiess v Collector of Customs & Ors [2013] QCA 54 and held that s 167(4) of the Customs Act 1901 operates to bar all actions for the recovery of duty paid to Customs, irrespective of whether…

*FCT v Ludekins – High Court refused taxpayers leave to appeal from decision that imposed promoter penalties for repackaged woodlots scheme [7]

On Friday 11/4/14, the High Court refused 2 individuals special leave to appeal against the decision of the Full Federal Court in FCT v Ludekens [2013] FCAFC 100. In that decision, which now stands, the Full Federal Court unanimously allowed the Commissioner’s appeal and held that 2 persons were “scheme promoters” in terms of Div 290…

*MBI Properties Pty Limited v FCT – High Court allowed Commissioner to appeal decision that purchaser of reversion makes no supply to existing lessee [6]

The High Court Fri 11.4.2014, granted the Commissioner special leave to appeal 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 to leases, did…