The AAT has mostly affirmed the Commissioner’s decision that losses and outgoings a taxpayer incurred in earning personal services income (PSI) were not allowable deductions as there was not enough substantiation. The taxpayer provided horticultural advice to a business through a company. The Tribunal previously concluded in AAT Case [2009] AATA 906 that the income…
A taxpayer whose objections against notices of assessment for over $220,000 were ruled invalid by the Commissioner on the basis that he was bankrupt at the time and therefore had no standing to object to them, has been unsuccessful in his application to the Federal Court to appeal against the Commissioner’s decision. Although the taxpayer…
The Federal Court has held damages received by a taxpayer were not assessable income as they were held in trust for a company in relation to the 2005 income year. However, the Court dismissed the taxpayer’s appeal in relation to trust distributions received from a non-resident trust for the 2006 income year, but reduced the…
In December 2011, the Government released draft legislation for the new Australian Charities and Not-for-Profits Commission (ACNC), and a discussion paper to gather community feedback on elements of a new reporting framework for charities. Public consultation meetings are scheduled to be held around Australia commencing on 30 January 2012 in Brisbane and concluding on 13…
Treasury has advised that it received 21 submissions in response to the draft guidelines that were released to provide a new regulatory framework for public ancillary funds. There were 20 public submissions and 1 confidential submission. Treasury received submissions from Australia Council for the Arts, Australian Community Philanthropy, Blake Dawson, and other important stakeholders. [LTN…
The Government announced in the 2011-12 Budget that it would disallow deductions against government assistance payments following the High Court decision in FCT v Anstis [2010] HCA 40. Treasury on Fri 20.1.2012, released draft amendments seeking to amend the ITAA 1997 to disallow deductions against taxable government assistance payments that are eligible for a rebatable…
Treasury has advised that Australia has signed new Tax Information Exchange Agreements with: Bahrain – signed on 15 December 2011. Andorra – signed on 24 September 2011. Liberia – signed on 11 August 2011. The Agreements provide for the exchange of information on request in both criminal and civil tax matters. They will enter into…
The Government has announced that Australia and India have signed a Protocol amending the double taxation agreement between the 2 countries. The amending protocol was signed on 16 December 2011 and updates various aspects of the agreement including cross-border services, source country taxation, and assistance in collection of taxes. The amending protocol will enter into…
M o r g a n’ s T a x M o n t h – January 2012 Developments – This is a collection of developments in Australian tax law and practice that occurred in January 2012 and which aims at being of relevance to tax lawyers.* F John Morgan A member of the Victorian…
The Treasurer on Fri 20.12.2013, announced the final terms of reference for the Government’s Financial System Inquiry and the appointment of 4 members to serve on the Inquiry panel which is being chaired by Mr David Murray AO. The 4 members to serve on the Inquiry panel are: Professor Kevin Davis (currently a Professor of…