Yearly Archives: 2017

*TR 2012/D2 – Assessability of legal costs in termination of employment disputes: are not assessable as ETP’s but are an assessable recoupment of deductible legal costs [R1]

This Draft TR, issued Wed 11.4.2012, provides the Commissioner’s preliminary views on whether or not amounts received in respect of legal costs incurred in disputes concerning termination of employment can be included in assessable income. The Draft indicates that an amount received in relation to a dispute concerning the termination of employment is not an…

*MT 2012/1-2 – Tax and GST consequences re transfer of farm-out arrangements [R2]

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…

*ANZ v Konza – Taxpayer appeals the decision that a s264 notice was effective to get details of their Vanuatu customers from an Australian computer [C14]

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…

Kocic v DCT – High Court refuses taxpayer leave to appeal against Directors Penalty Notice liabilities [C13]

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…

*Legal Services Commissioner (Vic) v Stirling – Barrister’s practising certificate suspended for 3 years for tax offences stretching over 10 years [C12]

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…

*Re Mehta and FCT – Taxpayer held to be a share trader and he should be allowed deductions for losses [C11]

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…

*Re Phillips and FCT – CGT: Maximum net asset value test failed – liability not related to assets of the same entity [C10]

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…

*New appointments to the AAT with Tax Expertise – including Fiona Alpins in Melbourne [C9]

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…

Kelly v FCT – Partner partly unsuccessful in claiming assignment of partnership interest [C8]

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…

*Sent v FCT – Managing director assessable on accrued bonus amounts [C7]

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)…