Monthly Archives: February 2017

TD 2015/3 – ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ [41]

On Wed 18.3.2015, the ATO released Taxation Determination TD 2015/3, which ruled that ‘The interest’ referred to in the phrase at the end of subsection 974-80(2) is the interest held by the ‘ultimate recipient’ and not the interest held by the ‘connected entity’. The Determination goes on the explain: Division 974 contains rules for classifying an…

TD 2015/2 – ‘debt interest’ issued by AusCo is not an ‘equity interest’ under s974-80(1)(d) just because non-resident co invests in debt interest holder [40]

The ATO released Taxation Determination TD 2015/2 on Wed 18.3.2015, ruling that s974-80(1)(d) will not be satisfied: “ merely because a non-resident entity has chosen to invest indirectly in a debt interest issued by an Australian resident company and there is one or more equity interests interposed between the non-resident entity and the entity holding the…

TR 2015/D1 – ‘Bodies Corporate’ under strata title legislation – tax consequences [39]

The ATO has issued a draft ruling explaining specific income tax issues that affect: bodies corporate constituted under strata title legislation; and proprietors of a lot held under that legislation. In particular, it sets out the principles that determine which entity holds property for the purposes of determining: the assessability of income and the deductibility…

Engineering Manager and FCT – Individual returning to Australia mid-year was not resident for the whole year – no question of law (really?) [38]

The ATO [on Mon 2.3.2015] issued a Decision Impact Statement on The Engineering Manager and FCT [2014] AATA 969. In that case, the AAT held that an engineer who returned to Australia in April 2011 after working overseas since 2004, was not a resident of Australia for the whole of the 2011 year. The ATO said the…

Rio Tinto Services Ltd v FCT – appeal from decision that taxpayer not entitled to input tax credits to build and maintain mining accommodation [37]

The taxpayer has appealed to the Full Federal Court against the decision in Rio Tinto Services Ltd v FCT [2015] FCA 94. The Federal Court had dismissed the taxpayer’s appeal concerning its entitlement to input tax credits (ITCs) for certain acquisitions relating to mining accommodation (employee/contractor housing) in WA. [LTN 50, 16/3/15] FJM Note As…

Yazbek v FC of T – taxpayer discontinues his appeal [36]

The taxpayer has discontinued his appeal to the Federal Court against the AAT’s decision in Yazbek v FC of T [2014] AATA 423; 2014 ATC ¶10-369. The case concerned the derivation of dividend income and whether it was “paid” to the taxpayers for purposes of s 44 of the ITAA 1936. [IT 10/3/15] [LTN 47,…

*Financial Synergy Holdings Pty Ltd v FCT – ‘time of acquisition’ for consolidation purposes of deemed pre-CGT asset 19 September 1985 [35]

The taxpayer has appealed to the Full Federal Court against the decision in Financial Synergy Holdings Pty Ltd v FCT [2015] FCA 53. In that case, the Federal Court held that for the purposes of determining the “allocable cost amount” (or cost base) of an asset that came to be owned by a consolidated group…

*R v Dickson (No 18) – Individual sentenced to 11 years for conspiracy to defraud the Commonwealth of $135m through false depreciation claims [34]

An individual, who was found guilty under s 135.4(5) of the Criminal Code Act 1995 of conspiracy to dishonestly cause a loss or risk of loss to the Commonwealth of potentially some id=”mce_marker”35m (as well as conspiracy to deal with the actual proceeds of crime from the conspiracy of id=”mce_marker”m), has been sentenced to imprisonment for…

*Gadens Lawyers Sydney Pty Ltd v Symond – Taxpayer’s damages for negligent advice re tax liability from company restructure reduced [33]

In a decision handed down on Tue 17.3.2015, the NSW Court of Appeal has partly allowed an appeal and has reduced the amount of damages awarded to the respondent, Mr John Symond (founder of “Aussie Home Loans”), by just over id=”mce_marker”m after finding that the primary judge had erred in including in his calculations of the…

Healy v DCT – Court rules DPN effectively served on company director by post to the address listed in ASIC records [32]

The WA Court of Appeal has dismissed a taxpayer’s appeal against his arguments about claimed non-effective service of a DPN (director’s penalty notice). A company director was served with a DPN under s 222AOE of the ITAA 1936. The DPN was enclosed in a prepaid letter sent from the ATO in Canberra on 23 August 2006 and the…