Tax agent company and sole director’s registration terminated (5 year no-application period) for debt, theft and incorrect declaration

Tax Month - August 2019

On 13 August 2019, the Tax Practioners Board (Board) uploaded a news article advising that it had terminated the registration of a tax agent and imposed a 5 year period, during which the agent could not apply to be re-registered. And it wasn’t just for the $1.4m the agent owed in tax and superannuation debt.…

Tax Agent’s registration terminated for failure to pass the ‘fit and proper person’ test – 12 month before he can reapply – AAT upheld Board’s decision

Tax Month - August 2019

On 7 August 2019, the Tax Practitioners Board uploaded a news article that a Mr Shmuel had his registration as a tax agent terminated, because he failed to meet the fit and proper person’ test. Also, the Board imposed a 12 month period, where he could not re-apply. Further, the AAT upheld the TPB’s decision.…

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

Tax Month - August 2019

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

Tax Month - August 2019

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)

Tax Month - August 2019

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…