Daily Archives: March 24, 2017

Trustee for the Whitby Trust and FCT – $2m price of option not added to the $26m paid for the purposes of the ‘margin scheme’ – not ‘consideration for [the] acquisition’ of the real property

A property developer has been unsuccessful in arguing that a fee paid for an option to purchase real property formed part of the acquisition cost of the property. The taxpayer entered into an agreement with the vendor to purchase the property for $28m, which included a non-refundable option fee of $2m. The option was exercised…

GST-free child care for ‘long day care’ and ‘in-home care’ continues to be GST-free after previous determinations by the Minister replaced by new s38-150(e) determination

The GST-free Supply (Long Day Care and In-home Care) Determination 2017 was registered on Thur 23.3.2017, to ensure that supplies of child care will remain GST-free where funding is provided by the Commonwealth for in-home care or long day care services. This determination is made under s38-150(e) of the GST Act, which allows the Child…

Re Walker and FCT – Deductions for travel, accommodation, food not allowed as taxpayer not an itinerant worker

The AAT has affirmed the Commissioner’s decision to deny deductions for over $25,000 for meals, groceries, accommodation, motor vehicle, caravan, mobile phone and internet services, incurred in the 2014 and 2015 income years. Normally, home to work travel, travel between two different employments, and other private expenses are not deductible, on authority of the High…

Tech Mahindra Limited v FCT – High Court refused taxpayer’s application to appeal – Full Federal Court decision stands that work performed from Indian PE was taxable in Australia as a ‘know-how’ based ‘royalty’

The High Court, sitting in Sydney, has refused the taxpayer’s application for special leave to appeal against the Full Federal Court decision in Tech Mahindra Limited v FCT [2016] FCAFC 130. The Full Federal Court decision, which now stands, dismissed the taxpayer’s appeal, effectively upholding the judgment of Perry J in September 2016 that a company resident in…