DCT v Frangieh (No 3) – Taxpayer fails in claim of conscious maladministration against DCT

A taxpayer, whose assessment for the year ended 30 June 2007  was amended in 2014 to include unexplained deposits of $3.5m following an audit, has been unsuccessful in his action against the Commissioner for misfeasance in public office, abuse of process and breach of duty of good faith (ie “conscious maladministration”). Instead, the NSW Supreme Court found that the…

Re Davy and FCT – Work-related travel deductions in excess of actual expenses disallowed – the ‘maximum reasonable amount’ is just an exception from the substantiation amount (and not a license to claim more than incurred)

A taxpayer’s claim for work-related travel deductions in excess of the amounts he incurred has been unsuccessful. The taxpayer was an employee truck driver who was required to be away from home on most working days. He claimed work-related travel expense deductions for the 2011 and 2012 income years totalling just over $42,000. The deductions…

TD 2017/8 – Cost of travelling to have a tax return prepared is deductible – if unrelated purposes of the travel are appropriately apportioned

The Commissioner issued this Determination on Wed 29.3.2017, ruling that the cost of travelling to have a tax return prepared by a “recognised tax adviser” is deductible under s25-5 of the ITAA 1997. However, to the extent that the travel relates to another non-incidental purpose the expenditure must be apportioned. The Determination contains a number…

TD 2017/2-6 – FBT rates and thresholds for 2017-18 FBT year

On Wednesday 29.3.2017, the Commissioner released the annual Taxation Determinations of FBT rates, thresholds and other amounts for the 2017-18 FBT year (ie 1 April 2017 to 31 March 2018). TD 2017/2: The FBT record-keeping exemption threshold for 2017-18 is $8,393 (up from $8,286). TD 2017/3: The benchmark interest rate for the 2017-18 FBT year is 5.25% per annum (down from 5.65%). The…

Re The Norwestern Trust and FCT – GST: GST shortfall validly assessed (because of fraud or evasion) and no remission allowed for the $279k 75% penalty (for failure to lodge) – 13 reminders and still failed to lodge

The AAT has affirmed the Commissioner’s decision not to remit 75% penalties of $650,000 imposed on a taxpayer under s284-75(3) and s284-90 of Sch 1 to the TAA for failing to lodge 13 BAS returns between 2007 and 2011 – a period during which it sold 7 out of 10 townhouses it had developed in suburban…

Insolvency reforms (the ‘Innovation Package’) – issue of exposure draft proposing exemption from ‘insolvent trading’ for directors in reasonable restructures and a stay on ‘ipso facto’ clauses (triggered by insolvency)

As part of the National Innovation and Science Agenda (NISA), the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer, has released draft legislation which reforms Australia’s insolvency laws and an accompanying draft explanatory statement for public consultation. This was on Tuesday 28.3.17. The draft legislation will amend the Corporations Act 2001 in an…

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 – passes the senate with 6 agreed Govt amendments – passing the Govt’s Corp Tax Cut plan: 27.5% in 2017 (sub-$10m turnover); 2018 (sub-$25m) and 2019 (sub-$50m)

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was passed by the House of Reps on Mon 27.3.2017 and the Senate late on Friday 31.3.17 before rising to return for the Budget sittings in May. The passage of this Bill was achieved with the agreement of the Xenophon Team. It will have to return to the…