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

*Re Sneddon and FCT – Taxpayer resident of Australia under ordinary concepts despite over 2 years away, based on property maintained and money remitted here – therefore Qatar employment income assessable [23]

Tax Month - August 2012

The AAT has found on the balance of the facts that a taxpayer was an Australian resident according to ordinary concepts for the income year ended 30 June 2009. Accordingly, it held that foreign employment income derived by the taxpayer was properly included in his assessable income for Australian tax purposes. The taxpayer left Australia…

Re Hourani and Tax Practitioners Board – Application for tax agent registration refused (AAT confirms TPB’s deision) [22]

Tax Month - August 2012

The AAT has affirmed a decision of the Tax Practitioners Board refusing an applicant’s application for tax agent registration on the grounds that he was not a “fit and proper person” under s 20-5 of the Tax Agent Services Act 2009. The Tribunal noted the Board’s concerns with respect to the applicant’s fitness and propriety…

*Re Sea Shepherd Australia Limited and FCT – Sea Shepherd Australia Limited not a deductible gift recipient because it doesn’t provide direct care to animals [21]

Tax Month - August 2012

The AAT has held that Sea Shepherd Australia Limited was not entitled to be endorsed as a deductible gift recipient. In doing so, it affirmed the Commissioner’s decision to disallow the taxpayer’s objection to his refusal to endorse the taxpayer as a deductible gift recipient. The Tribunal said the taxpayer was established by Sea Shepherd…

BCI Finances Pty Limited v FCT – Court approves order requesting overseas evidence in tax case where receipt from foreign bank doubted as loan [19]

Tax Month - August 2012

The Federal Court has granted the Commissioner’s application for an order, under s 7(1)(c) of the Foreign Evidence Act 1994, that a letter of request be sent to the judicial authorities of Israel to obtain the evidence of a bank employee there, as well as an order that the taxpayer provide to the Court a…

Mitsui & Co (Australia) Ltd v FCT – taxpayer loses appeal and can only depreciate ‘farm-in’ costs (can’t apportion between production and exploration) [18]

Tax Month - August 2012

In a decision handed down on Tue 14.8.2012, the Full Federal Court has dismissed a taxpayer’s appeal and upheld the Commissioner’s disallowance of a deduction made in respect of the part of the consideration the taxpayer attributed to a petroleum production field. In early 2004, Woodside Energy Limited was the holder of an exploration permit…

*FCT v McWilliam – Employee correct to say his ‘acquisition date’ for shares under the old Div 13A (regarding ESS) was the date of his contract and not later when options issued or resolutions passed [17]

Tax Month - August 2012

In a decision handed down on Wed 8.8.2012, the Full Federal Court has dismissed the Commissioner’s appeal against an earlier AAT decision and held that the taxpayer had applied the correct acquisition date in relation to share options and was therefore not subject to shortfall penalties that had been imposed. The taxpayer was granted options…

High Court special leave decisions: 2 granted (Mills and Consolidated Media), one refused (Esso Resources) [15]

Tax Month - August 2012

The High Court heard the following special leave applications on Fri 17.8.2012: : The Court to appeal against the decision of Millsgranted the taxpayer’s application for special leavethe Full Federal Court in Mills v FCT [2011] FCAFC 158. The Full Federal Court had confirmed that the “imputation benefit” scheme provisions in s 177EA of the…

Submissions sought on the merits of having an Inter-Governmental Agreement to help facilitate the USA FATCA laws [14]

Tax Month - August 2012

As has been extensively reported in the Thomson Reuters Weekly Tax Bulletin ever since the US Foreign Account Tax Compliance Act (FATCA) was first mooted, FATCA has caused compliance headaches for many financial institutions around the world, including in Australia. FATCA is intended to assist US efforts to improve compliance with US tax laws and…