Daily Archives: August 15, 2019

Fortunatow v FCT – PSI income rules – taxpayer’s company passed the ‘unrelated clients test’ by advertising to the public through ‘Linked In’ and through recruiting companies he used to deal with his 8 ultimate clients

On 12 August 2019, the Federal Court upheld the taxpayer’s appeal from the AAT, which had made an adverse finding, that the ‘personal services income’ (PSI) rules to assess the Taxpayer, to his companies’ consulting income – despite having 8 ultimate clients. The Court remitted the matter back to the AAT to be determined according…

Douglass v CofT – Partnership income subject to PSI rules because it did not plant and equipment, or tools of trade, needed to perform the work

On 12 August 2019, the Federal Court dismissed the taxpayers appeal from the AAT’s decision that husband’s personal services income should be taxed, to him (under Div 86 of the ITAA97) despite the services being supplied by a partnership with his wife. This was because he did not ‘supply the plant and equipment or tools…

ATO’s take on the Commissioner’s Glencore ‘privilege’ victory in the High Court (with editorial comment)

On 14.8.19 the ATO’s Second Commissioner: Jeremy Hirschhorn, issued a statement welcoming the High Court’s decision that Glencore could NOT prevent Commissioner using documents, stolen by a whistleblower, from its Bermuda law firm, even though they were subject to legal professional privilege (confirming that privilege is a ‘shield not a sword’). See below for the…

The AFR on Glencore – High Court backs ATO in fight with mining giant over Paradise Papers

On the same day the High Court brought down it’s seminal decision on ‘legal professional privilege’ (14.8.19) the Australian Financial Review ran a story on that case, including some useful background. See below for the full article. See also, the related Tax Technical article on the Glencore case [2019] HCA 26 and on the ATO’s take on…

Glencore loses High Court Appeal – ‘legal professional privilege’ does not found an action but only provides immunity from disclosure (a ‘shield not a sword’)

On 14 August 2019, the High Court of Australia handed down a very significant decision holding that Glencore was NOT entitled to an injunction, compelling the Commissioner of Taxation to deliver up, and restraining him from using, various documents stolen from its lawyers in Bermuda (amongst the so called ‘Paradise Papers’ on the sole basis…