Author Archives: John Morgan

*Collection Point Pty Ltd v FCT – Taxpayer’s FOI request for names of members with unclaimed moneys denied as ATO would have to write a new program to comply [20]

The Federal Court has denied a company’s request to the ATO under the FOI Act for information concerning unclaimed superannuation. The taxpayer helps clients to retrieve unclaimed superannuation from accounts where the superannuation fund cannot identify the person entitled to the account. The Commissioner maintains a register containing particulars of unclaimed money paid by superannuation…

Binetter v DCT (No 3) – Section 264 notice stands [19]

In a decision handed down on Fri 6.7.2012, the Federal Court refused a taxpayer’s application for judicial review of the Commissioner’s decision to issue a notice under s 264 of the ITAA 1936 that required her to furnish information and to produce documents. In an audit in 2010, the ATO identified certain bank deposits (totalling…

*Ferguson v FCT – Valid to lodge appeal to court on the substantive issue and an application to the AAT to review the shortfall penalty decision [18]

The Federal Court has dismissed the Commissioner’s application to strike out the taxpayer’s appeal to the Federal Court against the disallowance of objections to 2 amended assessments. The Commissioner sought the order on the basis that by the time the taxpayer had filed his appeal in the Court, the Commissioner had already commenced proceedings in…

*August v FCT – Profits on sale of property and land assessable as ordinary income [17]

The Federal Court has dismissed 2 taxpayers’ appeals and held that income they received as beneficiaries of a number of trusts was income according to ordinary concepts and not gains of a capital nature. This was a factually complex case. The taxpayers were beneficiaries of a number of trusts of which Toorak Management Pty Limited…

*LVR (WA) Pty Ltd & Anor v AAT and FCT – AAT caught copying Commr’s submissions and Court ordered a different member to re-hear the case [16]

The Full Federal Court has allowed the taxpayers’ appeal from a 2011 Federal Court decision concerning their applications for review of the disallowance of objections to various income tax and GST assessments and penalty notices. The Taxpayers had made applications to have the AAT review decisions made by the Commissioner to disallow certain objections as…

Inquiry into LAFHA changes – transcript released [15]

The House of Reps Standing Committee on Economics in conducting an inquiry into the Tax Laws Amendment (2012 Measures No 4) Bill 2012 concerning the proposed LAFHA changes contained in the Bill. The effect of these changes has caused concern among those likely to be affected and the Committee has now released the transcript of…

*Trust reform start date deferred – Division 6, MIT’s & Streaming [14]

Mr Bradbury also advised that the Government had received substantial feedback to its initial consultation paper on Div 6 of Pt III of the ITAA 1936 issued in November 2011. In response to the feedback, he said the Government will defer the proposed start date for the broader reform of trust income taxation from 1…

*Treasury releases discussion paper on changing the definition of ‘fixed trusts’ [13]

Treasury on Mon 30.7.2012, issued a discussion paper seeking views on “a more workable approach for fixed trusts”. The Government in November 2011 had advised that it was aware that the current restrictive definition of “fixed trust” was an issue for trusts and said it would release a separate discussion paper. The Assistant Treasurer said…

Italian earthquakes – declaration of a disaster for tax purposes [12]

The Assistant Treasurer has announced on Tue 24.7.2012, that the earthquakes which hit North-Eastern Italy on 20 May and 29 May 2012 have been recognised as a disaster for tax purposes. Mr Bradbury said the declaration allows Australian taxpayers to claim an income tax deduction for donations made to the relief effort. He said funds…

*Government’s Forward Work Program for Tax Measures [11]

Treasury has released the Government’s Forward Work Program for Tax Measures as at 20 July 2012. The forward work program sets out the timetable for current and proposed consultation on tax and superannuation measures. It includes: details of discussions paper currently being drafted – eg appropriateness of the definition of fixed trust, GST – cross-border…