*Re The Study and Prevention of Psychological Diseases Foundation Incorporated and FCT – Psychological diseases foundation denied tax-exempt charity status [14]

Tax Month - January 2014

The AAT has affirmed the Commissioner’s decision that The Study and Prevention of Psychological Diseases Foundation Incorporated  had not met the requirements for endorsement as an income tax exempt charity under Subdiv 50-B of the ITAA 1997. The Foundation was incorporated in 2005 and had previously been granted tax-exempt status under s 50-110, was endorsed as…

*Re PNGR & Anor and FCT – significant investment properties bought with only modest income, amendments made outside 4-year period for fraud or evasion [13]

Tax Month - January 2014

The AAT has affirmed amended assessments issued by the Commissioner to husband and wife taxpayers outside the 4-year amendment period as it determined there had been fraud or evasion. The taxpayers conducted a number of businesses including a tobacco supply and snack bar business in a partnership. The AAT said they reported “modest income” from…

*Re Gutteridge and FCT – Taxpayers get CGT relief as trust was a ‘small business entity’ – appointor father was de facto director [12]

Tax Month - January 2014

The AAT has allowed husband and wife taxpayers’ appeals and held that the husband alone was the person who controlled the relevant Trust within the meaning of s 328-125(3) of the Income Tax Assessment Act 1997 (‘ITAA97’) and therefore that the Trust was entitled to certain CGT Small Business Reliefs. A company was incorporated in August 2005 and…

*Re XTJT and FCT – interest and other holding costs, in acquiring her husband’s brother’s share of land not deductible – private not business purposes [11]

Tax Month - January 2014

The AAT has dismissed a taxpayer’s appeal and upheld amended assessments that had disallowed deductions claimed concerning a property. In 2000, the taxpayer’s husband and his brother inherited a property, which had been in their family since the 1950s. In 2006, the taxpayer purchased her brother-in-law’s interest. She and her husband’s plans were to subdivide…

*Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT – CGT liability arises on transfer of land to “joint development trust” [10]

Tax Month - January 2014

The Federal Court has held that a taxpayer who owned land in Melbourne, and who transferred it to a “joint-venture trust” established for that purpose in the 1999 income year (together with other adjacent land-holders who did likewise for the purpose of the commercial development of the parcels of land), was liable for CGT made…

*Watsford v FCT – assessed discount on shares acquired under employee share option scheme on date employment terminated, despite no options being exercised until next year (Div 13A) [9]

Tax Month - January 2014

The Federal Court has dismissed a taxpayer’s appeal and upheld a 2012 AAT decision in AAT Case [2012] AATA 815, Re Watsford and FCT that a taxpayer was required to include as assessable income a discount from the market value of shares he acquired on the exercise of options under an employee share scheme (ESS)…

*DCT v Specialised Finance Group Pty Ltd – instructions for AAT review of disallowed ITCs and offer to pay half of tax not enough to stave off winding up [8]

Tax Month - January 2014

The Federal Court has ordered that a company be wound up in insolvency concerning a tax debt of around $90,000, despite its claim that it proposed to commence proceedings in the AAT that, if successful, would mean that it owed no tax debt. The Deputy Commissioner had applied under the Corporations Act 2001 for an…

*Government (still) looking for an alternative to the ACNC [7]

Tax Month - January 2014

Minister for Social Services Kevin Andrews has reiterated the Government’s intention to abolish the Australian Charities and Not-for-profit Commission (ACNC). Speaking at an Australian Institute of Company Directors NFP Lunch, he said the Government considers the ACNC “imposes an unnecessary and ponderous compliance burden on the sector”. The Minister said the Government was looking to…