Chhua v FCT – ‘fraud or evasion’ assessments protected from s39B judicial review by s175 – power to raise assessment is not separate from the process protected by s175 and is not relevantly ‘jurisdictional error’

Tax Month - September 2017

The Federal Court has effectively dismissed a taxpayer’s claim for relief from fraud or evasion assessments. On 24 April 2013, the Commissioner issued amended assessments to the taxpayer for the 2007 to 2010 income years inclusive in reliance on s170(1) item 5 of the ITAA 1936 (fraud or evasion). The taxpayer brought proceedings under s 39B of the…

Cable & Wireless & Pacific Holding BV (in liquidation) v FCT – High Court refused the taxpayer leave to appeal the FFC decision that denied it a refund of $452m dividend withholding tax on its share of the $3.9b Optus share buy back – the amount was not paid from an untainted share capital account

Tax Month - September 2017

The High Court on 14 September 2017 dismissed the taxpayer’s application for special leave to appeal from the Full Federal Court decision in Cable & Wireless & Pacific Holding BV (in liquidation) v FCT [2017] FCAFC 71. The Full Federal Court decision, which now stands, unanimously dismissed the taxpayer’s appeal against a decision that it was not…

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 – exposure draft of Bill to exclude, from the 27.5% rate, small companies that carry on a business but have at least 80% ‘base rate passive income’ (so that 30% franking credits received can be fully passed on)

Tax Month - September 2017

On Monday 18.9.17, the Government  released exposure draft legislation proposing to exclude corporate tax entities from qualifying for the lower small business company tax rate if 80% or more of the entity’s assessable income is passive income. The Minister for Revenue said the Government’s decision to cut the tax rate to 27.5% for small companies…

Lewski v FCT – Beneficiary not liable to tax as trust loss deductions were relevantly ‘incurred’ and also she was not ‘presently entitled’ to any trust income – because the alternate resolution made her entitlement contingent or it infected the main resolution with invalidity also

Tax Month - September 2017

The Full Federal Court has overturned the AAT’s decision that the taxpayer was assessable on two trust distributions, made to her for two reasons. The first was that it confirmed the Trusts’ assumed losses for the relevant years. The second was that she had no ‘present entitlement’ to any trust income, either because the alternate…

Taxation Administration Regulations 2017 – promulgated to replace the 1976 regulations due to ‘sunset’ – refomated but no substantive change intended

Tax Month - September 2017

The Government promulgated Taxation Administration Regulations 2017 , which were registered on Thur 21.9.2017. They are to replace the 1976 Regulations which were due to sunset on 1 October 2017. The remade 2017 Regulations have been revised in several respects to adopt simpler language and remove duplicate or redundant provisions. However, the 2017 Regulations are not intended to alter…

Re Icehot Pty Ltd and FCT – taxpayer fails to get windfall refund of GST paid by a mortgagee bank and credited to mortgagor taxpayer – the ATO raised a debit to correct mistake then allowed the taxpayer’s objection, which the AAT held it could not review

Tax Month - September 2017

The AAT has ruled that the Commissioner’s reasons for allowing an objection decision in relation to a GST liability on the sale of the taxpayer’s properties by a mortgagee in possession was not reviewable by the AAT. In May 2013, a bank took possession of the taxpayer’s 2 properties over which the bank held a mortgage. The…

AUSTRAC & ACNC’s joint report: ‘Australia’s non-profit organisation sector: money laundering and terrorism financing risk assessment’ – 257,000 NPO’s investigated and ‘medium’ risk identified

Tax Month - August 2017

Australia’s first risk assessment of charities and non-profit organisations has revealed that the sector that is built around helping the most vulnerable is being targeted by criminals. Minister for Justice Michael Keenan and Assistant Minister to the Treasurer Michael Sukkar today released the joint report by the Australian Chatities and Non-profit Commission (ACNC) and AUSTRAC:…

TPB invites submissions on draft outsourcing and offshoring guidance for tax practitioners – for compliance with their obligations under the ‘Code of Professional Conduct’

Tax Month - August 2017

The Tax Practitioners Board (TPB) invites comment on a draft practice note which aims to assist registered tax practitioners understand oblilgations under the Code of Professional Conduct (Code) in relation to the use of outsourcing and offshoring. Chair of the TPB, Mr Ian Taylor said: ‘Offshoring and outsourcing services to third parties is of increasing significance to…

DCT v Whiteman – taxpayer denied a stay in proceedings for the collection of $8.5m just because of the risk of bankruptcy inadequately and belatedly deposed

Tax Month - August 2017

A taxpayer has failed to obtain a stay of proceedings, or alternatively a stay of execution of the judgment should judgment be entered, where the Deputy Commissioner was seeking summary judgment for a tax debt of almost $8.5m. The taxpayer argued that if a stay was not granted, it was virtually inevitable that he would…