Tax Newsletter FCT v Crown Insurance (Vanuatu) – High Court refuses Commissioner leave to appeal decision that insurance income did not have an Australian source [21]

Tax Month - June 2013

The High Court has dismissed the Commissioner’s application for special leave to appeal against the decision of the Full Federal Court in FCT v Crown Insurance Services Ltd [2012] FCAFC 153. The Full Federal Court had dismissed the Commissioner’s appeal from a 2011 AAT decision that held that insurance premium income derived by a non-resident…

*Preventing “dividend washing”: Discussion Paper released by Treasury [14]

Tax Month - June 2013

The Government Mon 3.6.2013, released a Discussion Paper on Preventing dividend washing. In the 2013-14 Federal Budget on 14 May 2013, the Government announced reforms to close, with effect from 1 July 2013, a loophole it said currently enabled sophisticated investors to engage in so-called “dividend washing”. The Government said this was a process that allowed sophisticated investors to…

Weeks v FCT – High Court refuses special leave to appeal from decision that termination payment was not a ‘genuine redundancy payment’ [23]

Tax Month - June 2013

The High Court has refused applications by the taxpayer for special leave to appeal against the decisions of the Full Federal Court in Weeks v FCT [2013] FCAFC 2 and Weeks v FCT and Commonwealth of Australia [2013] FCAFC 78. In the first case, the Court had confirmed that a termination payment made to the…

*Agius v The Queen – Wickenby: High Court dismisses taxpayer’s appeal against conviction against second charge [20]

Tax Month - June 2013

A full court of the High Court on Wed 5.6.2013, unanimously dismissed the appeallant’s appeal against his conviction in the NSW Supreme Court for conspiring to dishonestly cause a loss to the Commonwealth, contrary to s 135.4(5) of the Criminal Code (Cth). The appeallant was charged with 2 counts of conspiracy, both of which arose out…

Government to review regulatory arrangements of employee share schemes for start-ups [17]

Tax Month - June 2013

The Government announced on Wed 12.6.2013, that it will undertake [amongst other things] a review into employee share schemes (ESS) to help address the barriers faced by start-up companies in attracting and retaining staff. The ESS review will consider what measures could help address the barriers faced by start-up companies, such as: developing guidance to…

*‘Tax and Transfer Policy Institute’ launched and ATO will double the amount of ‘de-identified’ tax return data in the public domain available for research [13]

Tax Month - June 2013

The new Tax and Transfer Policy Institute was launched on Thur 27.6.2013, at the Australian National University’s Crawford School. The Institute was established through a $3m grant from the Federal Government to encourage a better understanding of Australia’s tax and transfer systems. It will work collaboratively and inclusively with other institutions and think tanks, and…

Reardon & Anor v DCT – High Court refuses directors leave to appeal against summary judgment given under DPN notice provisions [22]

Tax Month - June 2013

The High Court has dismissed the taxpayers’ applications for special leave to appeal against the decision of the Qld Court of Appeal in Reardon & Anor v DCT [2013] QCA 46. The Court of Appeal had by majority upheld the decision of the court at first instance to grant summary judgment against 2 directors for…

*Preventing dividend washing – specific integrity rule: Assistant Treasurer [19]

Tax Month - June 2013

The Assistant Treasurer says the Government will prevent dividend washing by inserting a specific integrity rule in the tax law. Mr Bradbury said that in developing the approach, the Government had worked with the business community, in particular with the Australian Financial Markets Association, the Australian Custodial Services Association, the Financial Services Council and the…