Yearly Archives: 2017

*Re Russell and FCT – Self-education expenses and work-related expenses claims denied for lack of documentation [14]

The AAT has affirmed the Commissioner’s decision denying a taxpayer’s deduction claims for work-related expenses, self-education expenses, and depreciating assets, for the 2002 to 2010 income tax years. The taxpayer, who worked as a network engineer, claimed deductions for self-education expenses and work-related expenses. The latter mainly consisted of home office occupancy and running expenses.…

*Re AP Energy Investments Limited and FCT – Foreign company not liable for CGT on sale of shares in Aust mining company – principal asset test failed [13]

The AAT has ruled that a Chinese company, which made a capital gain of some $4m in the 2007 income year, when it sold 75% of its 21.4% shareholding in an Australian company (“Abra”), was not taxable on that gain. Abra carried on a business of mining exploration and development in Australia. The decision to…

*Re S J Buller Pty Ltd and FCT – WET: taxpayer was an associated producer; rebates denied [12]

The AAT has affirmed the Commissioner’s decision to deny a taxpayer wine producer rebates under the WET regime for the March 2010 and June 2010 quarters and impose a 25% shortfall penalty. It did so on the basis that the taxpayer was an associate producer of a related third party. The taxpayer was a producer of rebatable wines for…

*Re Chang and FCT; Re Bai and FCT – Deposits in personal bank accounts: mixed results for taxpayers [11]

The AAT has made decisions concerning amended assessments issued to 2 taxpayers which it said were connected in some way with one or more companies in a company group. The first taxpayer was an employee of the company group. The second taxpayer was married to the director of the company group. (They are now separated.)…

*SPI PowerNet Pty Ltd v FCT Electricity transmission business – deduction for impost refused [10]

The Federal Court has found the imposts under s 163AA of the Electricity Industry Act 1993 (Vic) paid by a taxpayer to the State Treasurer (Vic) were not deductible under s 8-1 of the ITAA 1997 for the relevant years. The taxpayer derived assessable income from providing access to its electricity transmission network in Victoria and held…

*Buckeridge v FCT – Court holds that documents remain confidential in tax case [9]

In a decision handed down on Wed 4.9.2013, in a tax dispute matter, the Federal Court has held that, in what it said were “the unusual circumstances of the matter”, it agreed with the taxpayer’s request that certain documents in the case remain confidential. The substantive appeal in question concerns a challenge to the correctness…

*Macquarie Bank Limited & Anor v FCT & Anor – taxpayers fail in bid to have OBU expense allocation applied only prospectively under ‘U-turn’ ruling [8]

The Federal Court has refused 2 companies in the Macquarie Bank group their application for the Court to review a decision of Commissioner and his delegate to refuse to apply his view of the law on the allocation of Offshore Banking Unit (OBU) expenses solely on a prospective basis. The taxpayers sought the jurisdiction of…

Offshore Banking Unit regime changes – start date deferred [7]

The Assistant Treasurer: Senator Arthur Sinodinos on Sun 29.9.2013, announced the Government would not proceed with the 1 October 2013 start date for the reforms to the Offshore Banking Unit (OBU) regime that were originally announced in the 2013-14 Budget. As part of the 2013 Federal Budget, the previous Government had announced that it would amend the…

Coalition promises to clean up Labor’s legislation by press release on tax issues [6]

Treasurer Joe Hockey has indicated that the Government plans to sort through the previous Government’s list of announced but unlegislated measures in relation to taxation. He said: “The final major piece of legislation from our portfolio perspective is cleaning up Labor’s mess of announced but unlegislated initiatives in relation to taxation. We are methodically going through…

*Incorporation of NSW barristers’ practices: motion defeated [5]

A motion proposing to permit the incorporation of barristers’ practices was defeated at a general meeting of the NSW Bar Association held on 17 September 2013. The motion had sought an indication of support for changes that would allow barristers to choose to practise through single member, sole director companies. The motion was defeated (745 no; 375…