*Esso Australia Resources Pty Ltd v FCT – taxpayer applies for leave to appeal reversal of deduction claim under PRRT [39]

The taxpayer has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in Esso Australia Resources Pty Ltd v FCT [2012] FCAFC 5. The Full Federal Court had unanimously overturned a decision at first instance and held that Esso Australia Resources Pty Ltd was not entitled…

*Re IOOF Holdings Limited and FCT – Taxpayer applied for ruling on consolidation effect of ‘rights to future income’ in Dec 2010 and expected a ruling before the 31 March cut-off but failed to get back-dated ruling [39]

The AAT has dismissed the application of a taxpayer who sought a review of a deemed decision of the Commissioner to disallow an objection to a deemed decision to deny a private ruling. The taxpayer was also unsuccessful in seeking to have any finding made in its favour to take effect retrospectively to counter the…

Re Davsa Forty-Ninth Pty Ltd ATF Krongold Ford Bus Unit Trust and FCT – No summonses for taxpayer to examine ATO employees [38]

In a somewhat unusual case, the AAT has refused a taxpayer’s application for the issue of summonses to 3 ATO employees so the taxpayer could examine them in support of its claim to be carrying on a business and therefore be entitled to input tax credits. The substantive application involves disputed entitlements to input tax…

*Re JCZC and FCT – boat deductions disallowed but penalty reduced to 25% because it was not “reckless” and not “reasonably arguable” [37]

The AAT has reduced a tax shortfall penalty from 50% to 25% after finding that a taxpayer and its tax agent were not “reckless” in claiming $3.1m in deductions for a boat owned by a related trust. The taxpayer is the corporate trustee of a trust (controlled by Mr X) that is the ultimate beneficiary…

*Re Hopkins and Anor and FCT – Commissioner disallowed $1m deduction – 46 default beneficiaries should have been assessed [36]

The AAT has ruled that amended assessments issued to the father and son beneficiaries of a family trust were excessive. The amended assessments increased the distributions to the beneficiaries in the years in question by reference to the denial of deductions of some $1m for payments made to an employee entitlement fund by a fuel…

*Groves v FCT (No 4) – Stay of CGT appeal granted to ABC Learning Centres wife – pending Supreme Court ruling on alleged sale of shares [35]

In a judgment of the Federal Court dated 15 March 2012, the Court has granted a stay of Federal Court proceedings on a CGT issue pending conclusion of related proceedings in the Supreme Court of Qld. The stay was granted until the earlier of resolution of the Supreme Court proceeding or 1 March 2014 or…

*Gashi & Anor v FCT – Husband fails onus to show asset betterment assessments and 75% penalties were excessive but wife’s evidence she was just a house wife was accepted [34]

The Federal Court has made orders concerning income tax assessments and penalties issued to husband and wife taxpayers for the 2000 to 2006 income tax years inclusive. The matter concerned default assessments (including 75% penalty with the 20% uplift for most years) issued by the Commissioner to the taxpayers following an audit in March 2010.…

*Barossa Vines Limited v FCT – Leave granted to amend application to contest ATO decision to withdraw product rulings [33]

The Federal Court has granted a company’s request to be granted leave to file an amended originating application in relation to the Commissioner’s decision to withdraw 3 product rulings that had been issued to the company. The rulings were withdrawn on the grounds that there was a “material difference” in the way in which the…

*DCT v Hua Wang Bank Berhad (No 3) & Ors – Wickenby matter: GIC remitted, but stay refused because foreign taxpayers would remit funds overseas [32]

The Federal Court has ordered that GIC be excised from assessments issued to several taxpayers, but that their application to stay the Commissioner’s proceedings against them (to enforce earlier summary judgments made against them by the Federal Court) be denied. In a judgment by Kenny J of the Federal Court on 25 November 2010, a…

*FCT v Traviati – matter remitted to AAT after it erred in remitting 5% penalty – it should decide ‘careless’ issue first and ‘reasonably arguable’ issue second – ‘harshness’ irrelevant given scheme of provisions [31]

The Federal Court has allowed the Commissioner’s appeal from the decision in AAT Case 2011 AATA 478, Re Traviati and FCT, in which the AAT remitted 5% shortfall penalties in relation to the denial of over $1.5m in deductions for investments in a retirement village investment scheme. The AAT remitted the penalty on the basis…