John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

Ham v Tax Practitioners Board – The Court agreed with the AAT and TPB that it was correct not to re-register the former tax agent – not a ‘fit and proper person’ because of ‘actual dishonesty’ to a long standing client and friend, without remorse

Tax Month - November 2018

The Federal Court has dismissed an applicant’s appeal against a decision to deny his tax agent registration renewal application on the basis that he was not a fit and proper person. The Applicant/Appellant/Former Tax Agent had been involved in legal action, in which equitable fraud was found to have occurred. The facts are recited at…

Mavris v CofT – AAT’s decision, partly infavour of the Taxpayer (on LCT) was not invalidated by his death after the hearing and submissions – no statutory basis and pointless

Tax Month - November 2018

The AAT has decided that it had the jurisdiction to make a decision even though the applicant died before the publication of the decision. The taxpayer had been partially successful in avoiding ‘Luxury Car Tax’ (LCT) in the earlier decision of Mavris v CofT [2018] AATA 1825, and the Commissioner wanted to treat the decision…

Labor’s negative gearing restrictions – TTI digs into detail and reveals it applies to all investment types, but on an aggregate basis – total investment deductions capped at total investment income

Tax Month - November 2018

On 8 Nov 18, The Tax Institute (TTI) issued a media release, providing detail about the Labor Party’s negative gearing restriction on investments. The bad news is that the proposed limitation on negative gearing deductions will apply to all investment types (not just real estate with a new constructions exemption). The good news is that this…

3Bears Childcare Centre Pty Ltd v DCT – Taxpayer sought to review Registrar’s decision not to set aside the ATO’s Statutory Demand but failed as the original application was too late

Tax Month - November 2018

The Federal Court has dismissed an application by a company seeking to review a Registrar’s decision refusing to set aside a statutory demand to pay $538,685. The Statutory Demand had been issued the Deputy Commissioner of Taxation (DCoT), in respect of liabilities claimed to be owing, for running balance account deficit debts and unpaid superannuation…

DCT v Morando – No stay order for $1.8m tax debt recovery against ‘bikie’ – despite gruelling facts the taxpayer did not put on sufficient evidence of objection merits or extreme hardship without stay

Tax Month - November 2018

A taxpayer has been unsuccessful in seeking either an adjournment or stay order for matter involving a $1.8 million tax debt. The facts were these. The tax-related liabilities, the subject of this recovery action resulted from default assessments to the Taxpayer’s 2009 to 2014 tax years, based on an assets betterment approach. The Taxpayer was…

LCR 2018/9 – on ‘downsizer contributions’ to Superannuation Funds – 65+ owners of ‘main residences’ owned for 10 years, selling under post 30.6.18 contracts and making contributions up to $300k within 90 days of settling

Tax Month - November 2018

On 7 November 2018, the Commissioner issued Law Companion Ruling: LCR 2018/9 on the application of the recently enacted ‘downsizer contributions’ to Superannuation Funds – being contributions of up to $300,000 from the sale of a persons (or their spouses) interest in a main residence. This measure was introduced in Schedule 2 to the Treasury Laws…

Labor Government would give the ATO the power “name and shame” directors of phoenix companies & GSEs in Part IVA (by ‘disallowable instrument’) and apply to ASIC for disqualification of relevant directors

Tax Month - November 2018

Shadow Assistant Treasurer Andrew Leigh has announced that, if elected, a Labor Government would “name and shame” directors of phoenix companies – those illegally/fraudulently ‘phoenixed’ – where directors and/or others deliberately leave companies unable to pay their obligations to employees and respective governments (which is estimated to cost the Australian economy as much as $5.1…

Inspector-General of Taxation retired, Deputy: Andrew McLoughlin is acting IGT – IGT has absorbed Tax Ombudsman’s role, letting ‘individual’ complains inform the ‘systemic’ and vice versa

Tax Month - November 2018

On 5 November 2018, Mr Ali Noroozi retired from the role of Inspector-General of Taxation – after having acted for 2 terms of 5 years and having seen in many significant development, but perhaps none less than absorbing the Tax Ombudsman’s role (individual complaints) with its ongoing role, which is investigating and reporting on ‘systemic’…

Tax effect of new accounting standard: AASB17 (IFRS17) for consistent treatment of both life and general insurance contracts – Treasury discussion paper to consider currently different tax treatments

Tax Month - November 2018

Treasury has released a consultation paper on the tax impacts of implementing the new accounting standard for insurance contracts (AASB17) which provides a consistent accounting treatment of all insurance contracts. AASB17 adopts the new international standard for insurance companies: IFRS17. The tax implications, from a change in accounting standards are as follows. First, the ITAA97…