Yearly Archives: 2017

ATO releases 3 Decision Impact Statements [27]

The ATO on Thur 23.1.2014, released Decision Impact Statements on the following cases: FCT v Resource Capital Fund IV LP [2013] FCAFC 118 – The Full Federal Court had unanimously allowed the Commissioner’s appeal and held that s 255 notices requiring a company to retain out of Canadian currency sufficient funds to meet 2 taxpayers’ Australian…

FCT v Cancer and Bowel Research Association Inc atf the Cancer and Bowel Research Trust – AAT decision to remit charitable institution status matter [26]

The ATO on Tue 21.1.2014, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v Cancer and Bowel Research Association Inc as Trustee for the Cancer and Bowel Research Trust [2013] FCAFC 140. In that case, the Full Court had unanimously dismissed the Commissioner’s appeal from a “decision” of the AAT…

Macquarie Bank (OBU) case – ATO view of the Full Federal Court decision not to apply the anti ‘U-turns’ Practice Statement (and render that issue non-justiciable) [25]

The ATO on Mon 13.1.2014, released a Decision Impact Statement on the Full Federal Court’s decision in Macquarie Bank Limited & Anor v FCT [2013] FCAFC 119. In that case, the Full Federal Court refused Macquarie Bank Ltd leave to appeal against the decision of Edmonds J in Macquarie Bank Limited & Anor v FCT [2013]…

Crown Insurance case – source of non-resident insurance company income was not Australian [24]

The ATO on Mon 6.1.2014, issued a Decision Impact Statement on the Full Federal Court’s decision in FCT v Crown Insurance Services Ltd [2012] FCAFC 153. In that case, the Full Federal Court, in a majority decision, dismissed the Commissioner’s appeal from a 2011 AAT decision that held that insurance premium income derived by a…

Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT – taxpayer appeals decision denying depreciation on pipeline under consolidation regime [23]

The taxpayer has appealed to the Full Federal Court against the decision in Australian Pipeline Limited as Responsible Entity for the Australian Pipeline Trust v FCT [2013] FCA 1372. The Federal Court had dismissed the taxpayer’s appeal from an adverse private ruling concerning the issue of whether the conditions for the exception provided in s 705-47(5)…

Re Desalination Technology Pty Ltd and FCT – Commissioner appeals AAT decision to allow a $363k R&D tax offset [22]

The Commissioner has lodged a notice of appeal to the Federal Court against the decision of Frost DP in AAT Case [2013] AATA 846, Re Desalination Technology Pty Ltd and FCT. In that case, the AAT had held that a taxpayer company was entitled to an R&D offset of $363,281 under s 73J of the ITAA…

*Hancock v Rinehart – Commissioner denied access to court files in Rinehart case until matter completed, though could look at specified material [21]

The Supreme Court of NSW has refused the Tax Commissioner’s application to access a court file in relation to the ongoing Rinehart and Hancock proceedings in relation to the possible tax consequences of extending the vesting date of the trust (including any tax professional advice given on the matter). In refusing the Commissioner access to…

*Palermo v Palermo [No 2] – Business corporate and trust arrangements cannot be re-interpreted as a partnership [20]

The Supreme Court of WA has held that 2 brothers, who conducted an accounting practice and other businesses, were not in partnership. The 2 brothers had spent some 30 years in business together including an accounting practice, property development, share dealing, corporate consulting and farming. Over that time, they had used various structures such as…

*Deductions denied for $1m losses in MIS investment – going back 4 years under scheme to obtain ‘tax benefit’ qualification [19]

The AAT has affirmed objection decisions made by the Commissioner in relation to amended assessments issued to the taxpayer for the 2006 and 2007 income years to deny deductions of $518,000 and $416,000, respectively, concerning partnership losses in respect of a taxpayer’s investment in a Managed Investment Scheme (MIS), Great Southern Plantations 2005 Project, for…

*Re Yeates and FCT – Deductions for work-related expenses denied [18]

The AAT has affirmed the Commissioner’s decision to deny various work-related expenses that a taxpayer claimed for the 2008 income tax year as it found he had not discharged the onus of proof. It also affirmed the 25% administrative penalty imposed. The taxpayer was a senior pilot employed by Regional Express Holdings. During the relevant…