A taxpayer, a partner in a partnership of 7 solicitors, has been unsuccessful in arguing that a retiring partner had equitably assigned 20% of his interest in the partnership to a “partnership trust” and that therefore he (and the other partners) was only assessable on something less than 1/7th of the partnership profits in the…
The Federal Court has held that bonuses paid to a managing director of a company were assessable as ordinary income. The taxpayer was the managing director and CEO of a company. His employment contract provided for cash bonuses to be paid that fell into 3 categories: (i) those that had accrued and were payable; (ii)…
The Federal Court has ordered that the Commissioner extend the time for a taxpayer to comply with a s 264 notice. The assessments in question related to the Commissioner’s treatment as income of deposits in the taxpayer’s bank account. Assessments were issued and the taxpayer objected. The taxpayer argued that the deposits were partly of…
The Federal Court has deferred a winding up application until the taxpayer could have its case on objection decisions decided before the AAT. A Deputy Commissioner of Taxation filed on 4 November 2011 an application under s 459P of the Corporations Act 2001 for the winding up of the taxpayer company on the ground of…
The Federal Court has dismissed a Deputy Commissioner’s application for an order that a company be wound up in insolvency essentially on the basis that the ATO had not complied with s 109X of the Corporations Act 2001 and s 28A of the Acts Interpretation Act 1901. The statutory demand sought the payment by the…
The Federal Court has dismissed an appeal by a taxpayer, a former senior tax officer, against an earlier AAT decision, which held that a termination payment made to her because her services could no longer be effectively utilised by the Tax Office, was not a “genuine redundancy payment” under s 83-175 of the ITAA 1997.…
The Federal Court has dismissed the appeal of a taxpayer who claimed that the capital proceeds it was entitled to receive for the sale of its publishing business was less than the $4.1m assessed to it by the Commissioner. The taxpayer broadly argued that the effect of a “payment by direction” mechanism, whereby a related…
The Full Federal Court has unanimously confirmed the decision in Noza Holdings Pty Ltd & Ors v FCT [2011] FCA 46 that the head company of an Australian group of consolidated companies (“Noza”) was entitled to a deduction under s 25-90 of the ITAA 1997 (deductions for ‘debt interest’ costs incurred in deriving foreign non-assessable…
The Treasurer on Fri 13.4.2012, released the Business Tax Working Group’s final report on the tax treatment of losses which has recommended a loss carry back regime. The Working Group said a loss carry back could be implemented consistent with a model that: is limited to companies; provides a 2-year loss carry back period on…
A notice has been gazetted specifying the repayment incomes and repayment rates for the Higher Education Loan Program (HELP) for the 2012-13 financial year. The details are: For repayment income in the range Percentage rate to be applied to repayment income Below $49,095 Nil $49,095 to $54,689 4.0% $54,689 to $60,280 4.5% $60,280 to $63,449…