Yearly Archives: 2017

*Council of the Law Society of NSW v Healey – No grounds to strike off solicitor for delayed superannuation payments [41]

The NSW Administrative Decisions Tribunal (ADT) has dismissed an application by the Law Society of NSW calling for a solicitor to be struck off for allegedly delaying superannuation guarantee payments on behalf of her employees. In 2005, the respondent solicitor had received default superannuation guarantee charge (SGC) assessments from the Tax Office for superannuation shortfalls…

*Re ZKBN and FCT – Taxpayer an Australian resident; assessments affirmed [40]

The AAT has found that a taxpayer was an Australian resident for the income years ended 30 June 2007 and 30 June 2008. In doing so, it also affirmed the notices of assessment issued by the Commissioner to the taxpayer for the relevant years. The taxpayer was a mechanical engineer who worked in various countries as a contractor accompanied…

*Re Hartley and FCT – Not carrying on a business of share trading [39]

The AAT has affirmed a decision of the Commissioner that a taxpayer was a share investor and was not carrying on a business of share trading, and therefore deductions claimed on a premise that a business existed were denied for the relevant years. The taxpayer was during relevant times a full-time council employee. According to…

*Re B.E.R.T. Pty Ltd as Trustee for the B.E.R.T. Fund No 2 – Approved worker entitlement fund at 46.5% and could not be taxed at 30% as a public unit trust [38]

The AAT has held that an approved worker entitlement fund, which met the requirements of s58PB(2) of the FBTAA, was not a unit trust for the income year ended 30 June 2011. As a consequence, it found that the fund was not entitled to be taxed as a public trading trust. The taxpayer is the trustee of…

*Departure from private ruling; housing fringe benefit decision affirmed [37]

The AAT has found that a scheme was implemented by a taxpayer differently from the scheme described in a private ruling and that therefore the Commissioner was no longer bound by it and was authorised to issue the taxpayer with FBT assessments for the relevant years. The taxpayer owned 50% of a property, which contained…

*Income tax and GST assessments affirmed – rival ‘T accounts’ did not satisfy the burden of proof as the factual assumptions were not proved on balance of probabilities [36]

The AAT has affirmed the Commissioner’s decision to issue amended income assessments to husband and wife taxpayers as well as amended GST assessments in relation to a partnership for the 2002 to 2006 income years. In addition, it also held that the taxpayers were liable to a shortfall penalty of 50% for recklessness and that…

*Re Harste and FCT – No genuine redundancy payment because of the statutory requirement that the taxpayer not have turned 65 (he was 67) [35]

The AAT has ruled that a termination payment was not a “genuine redundancy payment” as the taxpayer was over age 65 when he was dismissed from his employment. The taxpayer, aged 67, received an employment termination payment (ETP) payment in September 2011 following a restructure by his employer whereby his services as a power generation plant operator…

Tettis v DCT – Tax debt compromise and GIC remission – taxpayer applications refused [34]

A taxpayer been unsuccessful before the Federal Circuit Court in seeking review of the Commissioner’s decisions to refuse a tax debt compromise and remission of GIC and penalties. The taxpayer’s father operated a jewelry business. However, following various misfortunes including ill health of the father and the global financial crisis, the taxpayer became aware of…

*DCT v Songa Offshore Pte Ltd – Commissioner successful in application for summary judgment for $38.5m, and no stay either [33]

The Federal Court has granted the Commissioner’s application for summary judgment against a taxpayer for a debt of over $38.5m (including interest and late payment charges), even though the taxpayer’s objection against the relevant amended assessment had not yet been dealt with by the Commissioner. The substantive matter related to an amended assessment issued to…

*Resource Capital Fund IV LP & Anor v FCT & Anor – s255 notices requiring Aust Co to pay Canadian currency it allegedly ‘controlled’ for vendor shareholders held ineffective [32]

Section 255 notices requiring a company to retain out of Canadian currency sufficient funds to meet a taxpayer’s Australian income tax liability were ineffective. The taxpayers (RCF IV and RCF V) were 2 limited partnerships formed in the Cayman Islands. They owned shares in an Australian company (Talison), which they sold to a third party.…