Daily Archives: March 2, 2017

No new evidence admissible to AAT review of private ruling objection decision – about application of non-commercial losses provisions to farming losses (34)

The AAT has affirmed the Commissioner’s decision to disallow the taxpayer’s objection to a private ruling. The taxpayer had sought to offset losses from his cattle breeding activities and (apparently) sought a private ruling in relation to the issue of whether the Commissioner should exercise his discretion under s 35-55(1) of the ITAA 1997 to…

*Re Boyn and FCT – Commissioner incorrectly calculated tax payable on ETP by allocating deductions and c/f losses to the less favourable component (33)

The AAT has held that the Commissioner had incorrectly calculated the tax payable on the taxable component of an employment termination payment (ETP). The Tax Office calculated the tax payable on the ETP taxable component of $250,880 by first offsetting the taxpayer’s deductions (and $173,445 of prior year losses) against his “ordinary taxable income”. The…

Federal Circuit Court of Australia Legislation Amendment Bill 2012 – passed by House of Reps (32)

The Federal Circuit Court of Australia Legislation Amendment Bill 2012 was passed by the House of Reps on Wed 10.10.2012, without amendment and now moves to the Senate. It will amend the Federal Magistrates Act 1999 and other legislation to rename the Federal Magistrates Court as the Federal Circuit Court of Australia, and to change…

*Pratt Holdings Proprietary Limited v FCT – No deduction for transfer of losses under mining provisions despite favourable ruling (because of retrospective legislation) (31)

The Federal Court has held that a taxpayer was not entitled to deduct a loss transferred to it from a related joint venture company in respect of a project to explore certain mining exploration tenements. This loss included part of a balancing adjustment deduction for “allowable capital expenditure” (ACE) claimed by the joint venture company…

Young v FCT – Insufficient evidence to support claim for credit for tax withheld (30)

The Federal Court has dismissed a taxpayer’s application under s 39B(1A) of the Judiciary Act 1903 that he was entitled to a credit of $160,0000 for tax withheld from payments of salary and wages paid to him in the 2004 income year by a company of which he was a director, employee and 50% shareholder.…

*Stewart & Ors v Australian Crime Commission – Wickenby: Full Court confirms no claim for privilege for certain documents (29)

The Full Federal Court has unanimously dismissed the appeal of the taxpayers (ie Anthony Stewart, John Cornell, Paul Hogan and Rimfire Films Pty Ltd) from the decision at first instance in Australian Crime Commission v Stewart & Ors [2012] FCA 29 in which the Federal Court held that legal professional privilege did not apply to…

*Howard v FCT – Damages assessable to taxpayer; no fiduciary duty (28)

A taxpayer has suffered a double defeat in the Full Federal Court – firstly, the Commissioner’s appeal against a decision that damages were received by the taxpayer in a fiduciary capacity was upheld, with the result that the damages were assessable to the taxpayer; and, secondly, his appeal against a decision that distributions from a…

Mills appeal – High Court transcript (27)

On 10 October 2012, the High Court heard the taxpayer’s appeal against the Full Federal Court decision in Mills v FCT [2011] FCAFC 158. The Court reserved its decision but has released a transcript of the hearing – [2012] HCATrans 259. The Full Federal Court had confirmed, by majority, that the “imputation benefit” scheme provisions…

*FCT v Qantas Airways Limited – Commissioner wins Qantas High Court GST case (26)

In a 4:1 majority decision (Heydon J dissenting), the High Court on Tues 2.10.2012, held that Qantas Airways Limited was liable to pay GST when it received fares on unclaimed flights. The Court allowed the Commissioner’s appeal against the Full Federal Court decision in Qantas Airways Ltd v FCT (2011) 81 ATR 816. The Full…

*Basel III and Tier 2 capital instruments not to become ‘debt interests’ under Australian tax law on Australia adopting Basel III capital reforms – draft regulations released (25)

As part of the 2012-13 Budget, the Government announced it will ensure that Australia’s implementation of the Basel III capital reforms does not preclude certain Tier 2 regulatory capital instruments from being classified as a debt interest for the purposes of the income tax law. The Government on Wed 31.10.2012, released for comment exposure draft…