Re Narumon Pty Ltd – Extension of a superannuation binding death benefit nomination (BDBN) by Powers of Attorney was binding but ‘conflicted’ change slightly benefiting a donee precluded under Attorneys legislation

Tax Month - August 2018

The Supreme Court of Queensland has ruled that a member’s 2013 superannuation ‘binding death benefit nomination’ (BDBN), was validly confirmed and extended, in 2016 by the donees of an enduring power of attorney (Power of Attorney). However an attempt to further amend (slightly) the beneficiaries under the DBDN, failed as it benefited one of the…

McGlinn v CofT – Non-commercial loss matter referred back to the ATO – ‘similar’ horse breading ‘business activities’ carried on sequentially confuses Commissioner

Tax Month - August 2018

On 24 August 2018, the Federal Court (recently appointed Steward J) set aside an ATO decision, in a non-commercial loss matter, and referred it back to the ATO for re-determination. The ‘non-commercial loss’ provisions are found in Div 35 of the ITAA97 and are designed to prevent individuals deducting losses, from a ‘business activity‘, against other income,…