The ATO says it has on Wed 20.8.2014, delivered guidance on the tax treatment of Bitcoin and other crypto-currencies in time for people to complete their 2013-14 income tax returns. The guidance includes Draft Taxation Determinations and a Draft GST Ruling (see below). The ATO has also issued a Guidance Paper. Under its guidance, the…
This Draft Ruling, released Wed 13.8.2014, outlines the special conditions that various entities listed in Div 50 of the ITAA 1997 (mostly not-for-profit entities) must satisfy for their ordinary and statutory income to be exempt from income tax. It considers 2 of the special conditions that the entities must satisfy, namely: that the entity must comply…
The ATO on Fri 1.8.2014, released Decision Impact Statements on AAT Case [2014] AATA 335, Re Dempsey and FCT – In this case, the AAT allowed the taxpayer’s objection to amended assessments issued to him for the 2009 and 2010 income years after finding the taxpayer was not a “resident” of Australia as that term…
The ATO has released a Decision Impact Statement on the NSW Court of Appeal’s decision in FCT v Moodie [2014] NSWCA 59. In that case, the Court of Appeal dismissed the Commissioner’s appeal and held that he should pay a liquidator’s costs in relation to a matter where a claim was made by the liquidator…
The ATO has released a Decision Impact Statement on the Full Federal Court decision in FCT v Hunger Project Australia[2014] FCAFC 69. The Full Federal Court decision dismissed the Commissioner’s appeal and held that Hunger Project Australia (HPA) is a public benevolent institution (PBI) for FBT purposes even though it was predominately engaged in fund…
The ATO has issued 2 Decision Impact Statements in response to the outcomes of 2 separate matters decided upon by the Full Federal Court in Howard v FCT [2012] FCAFC 149. Non-resident trust distributions The Full Court dismissed the taxpayer’s appeal against a decision that distributions (totalling almost $6.34m) received by the taxpayer (in the…
The AAT has affirmed an amended assessment issued to a taxpayer for the 2004 income year that was based on an asset betterment calculation. In March 2005, the taxpayer lodged his 2004 income tax return declaring a taxable income of $7,382. In July 2011, the Commissioner using the asset betterment method issued an amended assessment. The amended assessment included…
The Commissioner has been successful before the Supreme Court of Victoria in seeking declaratory relief to the effect that a company (“Glen”) was the beneficial owner of 4 shares in another company (“Jinacan”). Jinacan owned commercial property valued at some $8.5m. The reason the Commissioner sought the orders was that the Commissioner was an unsecured…
Three taxpayers have been successful before the AAT in matters concerning GST assessments, as well as income tax-related issues concerning deductions for superannuation and Div 7A issues (pertaining to company loans). The matters were remitted to the AAT for rehearing as ordered by the Federal Court on 3 September 2012. The background facts are complex involving 3 taxpayers…
A taxpayer has been unsuccessful before the AAT in a matter concerning a lump sum payment received in the 2011 income year following the settlement of an employment dispute. The taxpayer worked as a senior manager at St George Bank from 1988, and later with Westpac, until the termination of his employment in August 2009. In October 2009, the…