Yearly Archives: 2017

*Re Arthur Brady Family Trust; Re Trekmore Trading Trust – Vesting dates allowed to be varied to avoid potential tax costs [36]

The Supreme Court of Qld has allowed 2 discretionary trusts to amend the vesting dates in their deeds to expire 80 years from the settlement date of the trust deed. Trustees of the 2 discretionary trusts sought orders, pursuant to s 94 of the Trusts Act 1973 (Qld), to amend the vesting date of each trust…

*Re Kirkby and FCT – Proceeds from sale of mining tenements assessable income [35]

The AAT has upheld assessments including the proceeds from the sale of mining tenements in a taxpayer’s assessable income on the basis that he was carrying on a business of buying and selling mining tenements with a view to profit in partnership. In so finding, the AAT rejected the taxpayer’s argument that the sale proceeds…

*Re Cronan and FCT – Default assessments using industry benchmarks affirmed – no records kept sufficient to demonstrate taxable income [34]

The AAT has held that default assessments of income tax and GST issued to a taxpayer based on industry benchmarks was not excessive. It also affirmed the administrative penalties imposed by the Commissioner in relation to the shortfall. The taxpayer traded regularly on eBay purchasing mostly coins and banknotes, which he considered to be valuable…

*Re Dewheath Pty Ltd and FCT – Remission of penalties refused: failure to lodge BASs and income tax returns [33]

The AAT has refused to exercise its discretion to remit a 75% administrative penalty imposed on a taxpayer for unpaid taxes in relation to its failure to lodge BASs and income tax returns for multiple years. The taxpayer was a property development company and had failed to lodge BASs for the quarters ending 31 March 2008 to…

*Re Scanlon and FCT – CGT: obligation to pay an ETP was not a liability incurred ‘just before’ the CGT event – failed the maximum net asset value test [32]

The AAT has found that husband and wife taxpayers who were the sole shareholders and directors of a healthcare company were not entitled to the CGT small business concessions in Div 152 of the ITAA 1997 in respect of the capital gain made on the sale of their shares in the company in view of the…

McGrouther v FCT – Taxpayers’ s appealled on 14ZYA notices (giving the Commissioner 60 days to make an objection decision) but they cannot be withdrawn [31]

The Commissioner has been unsuccessful before the Federal Court in an interlocutory application brought to strike out or dismiss the taxpayers’ appeals against the “deemed” disallowance of their objections to amended assessments issued to them for the years of income ended 30 June 2000 to 30 June 2007. At issue was whether the taxpayers could withdraw notices they had…

FCT v Desalination Technology Pty Limited – R&D offset: Relevant expenditure properly ‘incurred’ – Commissioner loses appeal [30]

In a decision handed down on Tue 21.10.2014, the Federal Court has dismissed the Commissioner’s appeal and held that the taxpayer had “incurred” the relevant expenditure for the purposes of claiming an R&D tax offset. The AAT, in AAT Case [2013] AATA 846, Re Desalination Technology Pty Ltd and FCT, had held that the taxpayer…

*Ogden v FCT – Appeal dismissed: no question of law raised [29]

Following the decision in AAT Case [2014] AATA 385, Re Ogden and FCT in which the AAT confirmed that the taxpayer was not entitled to various work-related and personal investment deductions on the basis that he had not discharged the required onus of proof, the Federal Court has dismissed his appeal to the Court on…

*FCT v Australian Building Systems Pty Ltd (in liq) – No duty on liquidators to retain funds to pay CGT until assessment issued [28]

In a decision handed down on Wed 8.10.2014, the Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision in Australian Building Systems Pty Ltd v FCT [2014] FCA 116. In that case it was held that where an assessment has not been issued to the taxpayer in respect of a capital gain…

*Non-final withholding tax on taxable Australian property transactions: consultation paper [27]

The Government released on Fri 31.10.2014, a Discussion Paper on its proposal to proceed with a 10% non-final withholding tax on the disposal, by foreign residents, of certain “taxable Australian property”. The measure was originally contained in the Labor Government’s 2013-14 Budget and is to start from 1 July 2016. The measure is a collection mechanism to…