Daily Archives: September 19, 2018

Mango Reef Pty Ltd v CofT – Taxpayer’s claim for $621k of ‘input tax credits’ on alleged purchases of 145kg of gold – failed to prove that the purchases occurred at all and 75% shortfall penalties upheld

The AAT has rejected a taxpayer’s claim for input tax credits for the purported purchase of approximately 145kg of gold. The taxpayer claimed that in May and June 2014 it purchased, in 16 transactions, a total of approximately 145kg of gold from another company. The transactions allegedly took place in Sydney at the airport carpark, in hotels or at…

CR 2018/38 – Metcash Limited – Div 16K treatment of ‘off-market’ share buy-back and various dividend anti-avoidance rules

On Wed 29.8.2018, the ATO issued Class Ruling CR 2018/38 (Metcash Limited – Off-market share buy-back). This ruling considers the tax consequences for Metcash shareholders who dispose of their ordinary shares under an off-market share buy-back announced on 25 June 2018. The ATO treats the buy-back as an off-market purchase under Div 16K ITAA 1936. Importantly, the Commissioner…

Ford v CofT – 75% shortfall penalties for failure to lodge returns, remitted by the Commissioner to 50% but not further remitted by the AAT

The AAT has confirmed an ATO decision to impose a penalty on a taxpayer who failed to lodge her income tax return on time. The facts were these. The Taxpayer was late lodging her 2014/15 tax return. She had a tax agent, and might have been able to lodge as late as May 2016, under…