There is an ‘interesting’ issue about how a new bread of State ‘gains’ taxes on land gains, sit with Federal taxes on gains of most asset types. The new bread of State taxes are regimes to capture part of the gain arising from rezoning of land. The key issue is whether one exaction can be…
The ATO has had something of a ‘thorny’ relationship with Legal Professional Privilege (LPP) – bleating about it often and challenging claims in the courts too little. They finally challenged the PwC claim in the Federal Court and, to the extent that the case has run its course, won in a majority of the claims…
The ATO stirred up something of a hornets nest, in February 2022, when it released draft guidance material on the operation of some fairly draconian provisions in s100A of the 1936 Tax Act, originally directed at so called ‘trust stripping’ but which were drafted so widely as to become a danger to many (see related TT article).…
T a x T e c h n i c a l – M o n t h l y N e w s – May 2022 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner. Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________ …
The High Court has refused special leave to appeal from the decision of the Full Federal Court in Belconnen Lakeview Pty Ltd v Lloyd [2021] FCAFC 187. In that case, a Canberra developer had incorrectly claimed that the sale of a unit in the ACT was subject to GST, and faced a consumer law action…
Modelling agencies were taken to be employers of models and thus liable for payroll tax. The taxpayers (each for a separate period of time) operated a business, acting as agents for persons seeking work as models in advertising and promotional material. The business also involved entering into contracts with clients to supply the services of…
On 13.4.22, the NSW Supreme Court held that Godolphin was entitled to exemption from land tax, on 2 of its properties in the Hunter Valley as ‘land used for primary production’ under s10AA(3)(b) of the Land Tax Management Act 1956 (NSW). The Court held that the dominant use of the properties was for the maintenance…
Federal Court judge: Justice Moshinsky found against PwC in a landmark case regarding the extent to which documents generated, whilst acting for the Brazilian multi-national meat processor: JBS, were actually subject to ‘legal professional privilege’ (LPP) – PwC v CofT [2022] FCA 278. His Honour handed down is decision, on on 25 March 2022, in…
The AAT has held that an SMSF, that sold subdivided residential lots, was subject to GST on their sale, despite not being registered for GST. This was on the basis that it was ‘required to be registered’, which, in turn, depended on whether their sales proceeds could be excluded from the relevant turnover calculations. This…
The High Court held (on 6.4.22) that a beneficiary, who disclaimed their ‘default’ right to a trust’s income (on becoming aware of it) did not succeed in avoiding tax on the income they were entitled to and the end of the relevant year. ‘Disclaimer’ might ‘undo’ an equitable right, created unilaterally, but for equitable rights,…