*Re Elliott and FCT – the “foreign transactions” exception to the 2-year amendment rule did not allow the assessment of foreign employment income [25]

The AAT has held that amended assessments issued to a taxpayer outside of the standard 2-year amendment period to include foreign employment income were unlawful. The matter concerned the 2006 and 2007 income tax returns of the taxpayer, a pilot, who had disclosed exempt foreign employment income for both years. The Commissioner issued assessments for…

Re Sanctuary Lakes Pty Ltd and FCT – Deductions of $18m denied in relation to restructure of golf resort complex [24]

The AAT has confirmed that a taxpayer, a member of an overseas property development group, was not entitled to deductions for over $18m in various outgoings incurred in connection with the development of a “golf course and resort style living” complex. The outgoings were incurred following the taxpayer’s restructuring when it ran into financial and…

*RACV Sales and Marketing Pty Ltd and Innovation Australia – Development of the ANCAP Crash Testing Methodology over 8 years held not R&D [23]

The AAT has held that a company’s activities were not research and development (R&D) activities as those activities are defined in s 73B(1) of ITAA 1936. RACV Sales and Marketing Pty Ltd (RACV Sales) was registered under s 39J of the Industry Research and Development Act 1986 (IRD Act) in respect of R&D activities in…

*FCT v Rawson Finances Pty Ltd – Court overturns AAT: taxpayer fails to discharge onus of proving that deposits of $4.75m were only loans [21]

In a decision handed down on Tue 17.7.2012, the Federal Court allowed the Commissioner’s appeal and held that the taxpayer had not in fact discharged the onus of proving that amounts of over $4.75m deposited in its bank account from an overseas bank was not income. At first instance, in AAT Case [2011] AATA 628,…

*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…

*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…

*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…