Re Sobel Investments Pty Ltd and FCT – Expenses in buying, maintaining and selling properties not established in response to default assessments [C14]

The AAT has held the taxpayer failed to discharge the onus of proof in relation to the deductibility of expenses incurred in buying, renovating, and selling properties for the income years ending 30 June 2003 and 30 June 2004. The taxpayer was incorporated in 1995 and was in the business of buying and selling properties.…

AAT Case [2012] AATA 178 – Supermarket business fails to prove assessments for 10 years excessive [C13]

A taxpayer, both the trustee and a beneficiary of a family trust that operated independent supermarkets has been unsuccessful in discharging the onus of proof that amended assessments issued by the Commissioner for the 1993 to 2003 income years were excessive. The assessments were issued on the basis that the taxpayer was engaged in alleged…

*AAT Case [2012] AATA 142 – Employee correct that he had ‘rights’ to options to acquire shares in his employer on starting work, not later on issue of the options (under old provisions) [C10]

The AAT has held the taxpayer applied the correct acquisition date in relation to options acquired under an employee share scheme, and therefore was not subject to a shortfall amount or penalties as assessed by the Commissioner for the income year ended 30 June 2004. The taxpayer was granted options in a company as a…

Re Kalafatis and FCT – AAT hearing on assessability of a capital gain, deferred pending Supreme Court proceedings challenging transfers of land [C9]

The AAT has agreed to defer proceedings before it in relation to the assessability of a capital gain of $100,000 which the taxpayer claimed was incorrectly returned and lodged without his consent by the family accountant. In particular, the AAT ruled that the hearing should be deferred pending the outcome of Supreme Court action in…

*Healey v FCT – Trust agreed to buy shares and took a transfer 18 months later just prior to on-selling –No CGT discount as E2 event more specific than A1 and market value cost base (at later E2 time) not established [C7]

The Federal Court has held that a beneficiary of a trust was assessable on a capital gain of $14m to which she was presently entitled that arose from the sale of shares the trust had previously acquired under a “transfer agreement” for consideration of $3m – albeit, the shares were only transferred to the trust…

Kolya v Tax Practitioners Board – No error of law in decision to refuse to grant tax agent registration – not a ‘fit and proper’ person [C6]

The Federal Court has dismissed the applicant’s appeal from the decision of the AAT in AAT Case [2011] AATA 804, Re Kolya and Tax Practitioners Board which affirmed the decision of the Tax Practitioners Board to reject his application for transitional registration as a tax agent on the basis he was not “a fit and…

*Australia and New Zealand Banking Group Limited v Konza – Section 264 notices served on Australian bank, about clients of their Vanuatu subsidiaries, held to be valid [C5]

In a lengthy decision handed down on Fri 9.3.2012, the Federal Court has held that notices issued by the ATO under s 264 of the ITAA 1936 to Australia and New Zealand Banking Group Limited were valid. The bank had been issued with 2 notices requiring it to provide certain information about customers who have…