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

*Queensland Maintenance Services Pty Ltd v FCT – In ADJR action, a reduced garnishee order was held reasonable – only 20% of the $10m owed to the taxpayer [25]

The Full Federal Court has unanimously dismissed an appeal by the taxpayer, who owed the Commissioner more than $28.6m, in relation to the Commissioner’s decision to re-issue a third party garnishee notice under s 260-5 of Taxation Administration Act 1953 that only required a third party debtor to pay 20% of the $10m it owed…

*FCT v Crown Insurance Services Ltd – Court agrees that the ‘source’ of income is not a question of law that can be appealed from the AAT [24]

In a majority decision, the Full Federal Court has dismissed the Commissioner’s appeal from a 2011 AAT decision that held that premium income derived by a non-resident insurance company was not sourced either directly or indirectly from Australia and was therefore not assessable to the company. Before the AAT, in AAT Case [2011] AATA 847,…

*Mills v FCT – Taxpayer wins High Court appeal that Pt IVA does not apply to PERLS V Securities franking credit scheme [23]

In a decision handed down this on Wed 14.11.2012, the High Court unanimously allowed the taxpayer’s appeal against a decision of the Full Federal Court and set aside a determination of the Commissioner that no franking credit was to arise in respect of distributions made on certain securities issued by the Commonwealth Bank. The Court…

*Federal Court Chief Justice: Patrick Keane appointed to the High Court and replaced by Justice Allsop, currently President of the NSW Court of Appeal [21]

Chief Justice Keane currently heads the Federal Court of Australia. He will be the 50th person appointed to the High Court since Federation. Chief Justice Keane’s appointment will follow the retirement of the Honourable Justice John Dyson Heydon AC on 1 March 2013 after 10 years of dedicated service on the Court. Chief Justice Keane will be replaced in his current position…

*MIT tax changes have boosted investment in Australia by 54% over 2 years – per survey designed to encourage more tax efficient outcomes [19]

Investment in Australia via managed investment trusts (MITs) grew by 54% from $21.89bn to $33.60bn during the period 1 January 2010 to 31 December 2011, according to the Australian Investment Managers Cross-Border Flows Report released by the Financial Services Council (FSC) today [Tue 13.11.2012]. During this period, the report found that investment from the Asia…

*Financial planners providing tax advice will have to be registered under the Tax Agents Services Act – Regulation Impact Statement released [17]

Financial planners who provide tax advice will be subject to the requirements of the Tax Agent Services Act 2009 (TASA) with effect from 1 July 2013. Currently, the TASA only applies to tax advice provided by tax agents and BAS agents. The Government has now released a Regulation Impact Statement, prepared by the Treasury, on…