This Ruling, released Wed 20.2.2012, considers certain aspects of the feedstock adjustment provisions in Subdiv 355-H of the ITAA 1997. Subdiv 355-H reduces the concessional effect of granting R&D tax offsets where the registered R&D activities also involve the production of a tangible product by including an amount in the assessable income of the entity.…
This Determination, released on Wed 6.2.2013], provides an update of the amounts the Commissioner will accept for 2012-13 as estimates of the value of goods taken from trading stock for private use by taxpayers in certain specified industries. The amounts (which exclude GST) are: Type of Business Child 4-16 years ($) Adult/Child over 16 years…
This Determination, released Wed 27.2.2013, sets out the weekly amounts the Commissioner considers reasonable, under s 31G of the FBT Assessment Act, for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit in the period 1 April 2013 to 31 March 2014. If the total of food and drink expenses for an employee (including eligible…
The AAT has dismissed an appeal by a taxpayer and held there was no justification to extend the period for objections lodged in June 2012 against income tax assessments for the 1989 and 1995 income years. The taxpayer lodged an objection to the assessments for the relevant years in June 2012 (some 22 and 12 years late) on the…
The AAT has confirmed that lump sum payments made to former Qantas pilots under a “loss of licence insurance” scheme made under an agreement with their employer if they lost their pilots’ licence for medical reasons were assessable to the pilots as eligible termination payments (ETPs). The pilots argued that the payments, which were made…
The AAT has decided that a CGT asset was disposed of for the purposes of CGT event A1 when a Heads of Agreement was executed and not when the formal Contract of Sale was executed. The taxpayer made a capital gain of $704,129 when he sold his interest in a business. He claimed he was…
The AAT has decided that the repayment of a deposit paid upon entering into a contract to buy a retirement village was an assessable recoupment pursuant to s 20-20 of the ITAA 1997. Various entities formed a partnership, whose business included the acquisition, development and management of retirement village facilities. The taxpayer held an interest in…
The AAT has refused a taxpayer’s application for an extension of time to lodge an objection in relation to a capital gain on disposal of shares which occurred in the 2005 year. For the year ended 30 June 2005, the taxpayer lodged an income tax return prepared by her accountants, which included a net capital gain of…
Customs has advised a man was convicted in the NSW Supreme Court on Friday, 1 February 2013 following a Customs and Border Protection prosecution. The 2 men were fined $7,954,914 for cigarette smuggling and importing prohibited tobacco. On 2 August 2007, Customs said the men attempted to import a container they declared to Customs and Border Protection as containing…
The Victorian Supreme Court has granted the Commissioner summary judgment against a taxpayer for outstanding tax and penalty totalling almost $23m. On 20 February 2013, the Supreme Court (Mukhtar J) gave summary judgment for the Commissioner for $22,848,994.13 in tax and penalty. The Court said the assessments arose out of a payment of bonuses made to the taxpayer…