Husband and wife taxpayers who conceded that a “profit-washing” arrangement they entered into was a “sham” have been unsuccessful before the AAT in arguing that amended assessments were issued out of time and that 50% shortfall penalties for recklessness should have been remitted. The taxpayers operated a successful grain growing business in partnership and took…
The AAT has held a taxpayer was required to include a discount from the market value of shares he acquired on the exercise of options under an employee share scheme (ESS) in the 2007 year. It also upheld the Commissioner’s decision to impose a 25% shortfall penalty for failure to take reasonable care. The taxpayer…
The AAT has affirmed the Commissioner’s decision to refuse to release a taxpayer from an income tax and PAYG instalment debt pursuant to s 304-5 of the TAA as it considered the taxpayer would not suffer serious hardship. The taxpayer was a retired solicitor who had been in practice since 1979. He sought a release from…
The AAT has held a taxpayer was a resident of Australia within the meaning of s 6(1) of the ITAA 1936 for the 2006 to 2008 income years. Accordingly, it affirmed the Commissioner’s decision to assess the taxpayer on various foreign income earned in the relevant periods. The taxpayer migrated to Australia in 2005 with his…
The AAT has affirmed the Commissioner’s decision that a taxpayer was liable for a capital gain made on disposal of shares in a Panamanian company for the 2006-07 income year. In addition, it also affirmed the 50% shortfall penalty imposed by the Commissioner. The Commissioner commenced an audit of the taxpayer’s affairs and associated entities…
The AAT has held that a taxpayer satisfied the burden of proof that certain deposits to his bank account were not assessable to him. In addition, it held that interest paid on loans for investment properties were deductible to the taxpayer. However, the AAT held that the taxpayer was liable to an administrative penalty of…
A taxpayer has been partially successful before the AAT in relation to claims for depreciation for certain items of plant and equipment by a partnership (of which the taxpayer was found to be a partner). The AAT found that those items of plant and equipment were used in the business conducted by the partnership, being…
The AAT has exercised the discretion to disregard the operation of Div 7A on the grounds there was an honest mistake in not properly documenting loans by a private company to a shareholder. The taxpayer was a shareholder and director of a building company. In the 2005 income year, the company transferred money to the…
The Federal Circuit Court of Australia (Consequential Amendments) Bill 2012 was introduced in the House of Reps on Wed 28.11.2012. It will operate together with the Federal Circuit Court of Australia Legislation Amendment Bill 2012, and makes consequential amendments to Commonwealth legislation to reflect changes to the name of the Federal Magistrates Court and the…
The Federal Circuit Court of Australia Legislation Amendment Bill 2012 has now passed all stages without amendment and awaits Royal Assent. The Bill will amend the Federal Magistrates Act 1999 and other legislation to rename the Federal Magistrates Court as the Federal Circuit Court of Australia, and to change the title of Chief Federal Magistrate…