*Re Zarev and FCT – GST registration restored (computer repair business) but assessments stand – ITC private and/or no invoices [50]

The AAT has upheld GST and penalty assessments against a taxpayer but held that the taxpayer’s cancelled GST registration be restored. The taxpayer carried on what the AAT said might be called in layman’s terms a computer repair business. Following an audit of the taxpayer’s BASs for the period 31 March 2007 to 28 February 2011, the ATO issued…

*Professional Admin Service Centres Pty Ltd v FCT – No input tax credits for litigation funding provided to Nick Petroulias’ criminal defence [49]

The Federal Court has denied a taxpayer its claims for input tax credits for the periods between 1 July 2004 and 31 December 2006 on the basis of finding it had no entitlement to ITCs in respect of its payment of invoices for the provision of legal services in an individual’s defence of his criminal proceedings and in respect…

*MBI Properties Pty Limited v FCT – Commissioner seeks leave to appeal to the High Court that there was no increasing adjustment and no continuing supply from the purchaser of the reversion [48]

The Commissioner has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in MBI Properties Pty Limited v FCT [2013] FCAFC 112. The Full Federal Court had overturned an earlier decision and unanimously held that a taxpayer, that had purchased 3 residential apartments which were subject…

*ATO considering using external company auditors to provide assurance to it on various tax matters [46]

The ATO has advised that it is exploring the concept of how basic assurance work might be done using existing external compliance-assurance processes (ECAP). As part of this project, the ATO says it will consider a new approach to risk-assurance work relating to some publicly listed companies. These would be taxpayers the ATO has categorised…

*Warning over scheme involving stealing information to create payment summaries and collect fraudulent refund [45]

The Australian Federal Police (AFP), the ATO and the Department of Immigration and Border Protection on Tue 12.11.2013, issued a warning against participating in recent taxation fraud schemes. The warning comes after the agencies recently disrupted an organised criminal syndicate allegedly stealing information and creating fictitious payment summaries to obtain fraudulent refunds. Five offenders allegedly…

*TA 2013/3 – ATO warns professionals misusing discretionary trust partnerships – ‘further guidance’ being developed [43]

The ATO has announced that it is reviewing arrangements involving accountants, lawyers and other professionals operating through partnerships of discretionary trusts. It has issued Taxpayer Alert 2013/3 that describes arrangements where an individual purports to make the trustee of a discretionary trust a partner in a firm of accountants, lawyers or other professionals, but fails…