These Rulings, issued on Wed 18.4.2012, set out the Commissioner’s views on the application of the income tax and GST provisions upon entry into specified farm-out arrangements. MT 2012/1 concerns immediate transfer farm-out arrangements and MT 2012/2 deals with deferred transfer farm-out arrangements. Under an immediate transfer farm-out arrangement, an obligation to transfer a percentage…
The taxpayer has appealed to the Full Federal Court against the decision of Lander J in Australia and New Zealand Banking Group Limited v Konza & Anor [2012] FCA 196. The Federal Court had held that notices issued by the ATO under s 264 of the ITAA 1936 to the Australia and New Zealand Banking…
The High Court has refused the taxpayer special leave to appeal against the NSW Court of Appeal decision in Kocic v DCT[2011] NSWCA 322. The NSW Court of Appeal had dismissed the taxpayer’s appeal against an earlier decision of the NSW District Court which had affirmed 2 directors’ penalty notices (DPNs) issued to him in…
The Victorian Civil and Administrative Tribunal has handed down a 3-year suspension of a barrister’s practising certificate following a finding that he was guilty of professional misconduct within the meaning of s 4.4.3(1)(b) of the Legal Profession Act2004 (Vic) for engaging in conduct that justified a finding that he was not a fit and proper…
The AAT has held that a taxpayer was a share trader for the year ended 30 June 2009. The taxpayer sold an investment property in 2005 and decided to operate as a trader in shares. To this end, he reduced his hours of work in his primary occupation from 70 to 80 hours a week…
The AAT has held that a taxpayer had not passed the maximum net asset value test for the purposes of the CGT small business concessions in respect of a capital gain of $3.4m made on selling shares to his family trust. This was because a liability incurred, in respect of a related loan of $1.4m…
Federal Attorney-General Nicola Roxon Thur 19.4.2012, announced 7 new part-time appointments to the Administrative Appeals Tribunal. They include: Ms Fiona Alpins, Professor Robert Deutsch and Mr Stephen Frost have been appointed as Deputy Presidents with taxation expertise. Ms Gina Lazanas has been appointed as a Senior Member with taxation expertise. Source: Attorney-General’s media release, 19…
A taxpayer, a partner in a partnership of 7 solicitors, has been unsuccessful in arguing that a retiring partner had equitably assigned 20% of his interest in the partnership to a “partnership trust” and that therefore he (and the other partners) was only assessable on something less than 1/7th of the partnership profits in the…
The Federal Court has held that bonuses paid to a managing director of a company were assessable as ordinary income. The taxpayer was the managing director and CEO of a company. His employment contract provided for cash bonuses to be paid that fell into 3 categories: (i) those that had accrued and were payable; (ii)…
The Federal Court has ordered that the Commissioner extend the time for a taxpayer to comply with a s 264 notice. The assessments in question related to the Commissioner’s treatment as income of deposits in the taxpayer’s bank account. Assessments were issued and the taxpayer objected. The taxpayer argued that the deposits were partly of…