Monthly Archives: February 2017

Re Pacific Worldwide Pty Ltd and CEO of Customs – taxpayer wins as imported wontons, dumplings not classified as ‘pasta’ [21]

The AAT has held that a decision by Customs be set aside that had classified goods entered as wontons, dumplings, parcels and hargows as Pasta. The taxpayer is an importer of frozen foods, broadly described as dumplings and wontons with a seafood filling. The AAT said the goods are imported from Vietnam under the brand-name…

*Re Applicant and FCT – no reduction in tax on capital gain for prior year capital loss; lot compulsorily acquired and holding costs [20]

The AAT has affirmed the Commissioner’s objection decisions denying a taxpayer’s claims for reduction of a capital gain on the disposal of a property. In the year ended 30 June 1989, the taxpayer acquired 14.508 hectares of unimproved land, zoned “Rural”, situated in Wanneroo in Western Australia (Property) with the intention of developing it for use as…

*Trustee for the Payne Superannuation Fund v FC of T – ‘net exempt income’ losses cannot be carried forward to reduce future ‘net exempt income’ [19]

In a case involving the calculation of losses carried forward under Subdiv 36-A of ITAA 1997, the AAT has confirmed that a net exempt loss of a year of income cannot be carried forward to a future year but rather is lost. Under s 36-10 of ITAA 1997, a tax loss arises in any income…

Hii v FCT – Failure to consider ‘fraud or evasion’ issue not s39B invalid – Notice of Assessment conclusive except in Part IVC proceedings [18]

The Federal Court has dismissed a taxpayer’s application seeking orders that second amended assessments issued to him were invalid. These assessments were issued following the taxpayer being partially successful in his objection to the original amended assessments. In seeking the orders that the second amended assessments were invalid, the taxpayer argued that while the original…

*Donoghue v FCT – recovery proceedings dismissed – underlying assessments invalid because of intentional use of material protected by LPP [17]

The Federal Court has dismissed tax recovery proceedings against a taxpayer following earlier quashing assessments issued to him. Proceedings for the recovery of a taxation liability, grounded in the quashed assessments and related general interest charge (GIC), were originally instituted by a Deputy Commissioner of Taxation against the taxpayer in the Supreme Court of Queensland.…

*Donoghue v FCT – recovery proceedings dismissed – underlying assessments invalid because of intentional use of material protected by LPP [17]

The Federal Court has dismissed tax recovery proceedings against a taxpayer following earlier quashing assessments issued to him. Proceedings for the recovery of a taxation liability, grounded in the quashed assessments and related general interest charge (GIC), were originally instituted by a Deputy Commissioner of Taxation against the taxpayer in the Supreme Court of Queensland.…

*Commissioner of Taxation v Seymour – AAT should not have permitted the taxpayer to give video evidence for fear of arrest or DPO [16]

The Federal Court has set aside an AAT decision that had allowed a married couple who live in Mauritius to give evidence in a tax case by video link. The AAT had allowed the couple to give their oral evidence in a tax case by video link – Re The Overseas Applicants and FCT[2014] AATA…

Bond v FCT – Pilot’s insurance proceeds on losing his license for medical reasons was an ETP and not capital for personal injury under s82-135 [15]

The Federal Court has held that a lump sum payment made to an airline pilot who lost his pilot’s license for medical reasons was assessable as an eligible termination payment (ETP). Facts – The taxpayer was employed as an airline pilot. Following the cancellation of his pilot’s licence for medical reasons the taxpayer received a…

*FCT v Australian Building Systems Pty Ltd (in liq) & Anor – special leave to appeal – liquidator does not have to retain funds for tax on disposal [14]

The High Court heard (on 17.4.15), the Commissioner’s applications for special leave to appeal against the decision of the Full Federal Court decision in FCT v Australian Building Systems Pty Ltd (in liq) & Anor [2014] FCAFC 133. The Full Federal Court had confirmed that s 254(1)(d) of the ITAA 1936 does not require a liquidator to retain monies from…

*Queensland Nickel Pty Ltd v The Commonwealth of Australia – issue of free ‘carbon units’ did not give preference to one state and therefore valid [13]

On Wed 8.4.2015, the High Court unanimously upheld the validity of provisions of the Clean Energy Regulations 2011 (Cth) that provided for the free issue of carbon “units” to entities engaged in the production of nickel. The Clean Energy Act 2011 (Cth), Clean Energy (Charges – Excise) Act 2011 (Cth), Clean Energy (Charges – Customs)…