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

Touma & Ors v Chief Comr of State Revenue – NSW duty: taxpayers’ conceded overlooking ‘land rich’ duty on share transfer, had their valuation accepted preferred but still had 90% penalty confirmed [St1]

The NSW Administrative Decisions Tribunal has varied the “unencumbered value” of a property for land rich duty purposes, but confirmed a 90% penalty tax. In October 2007, the taxpayers purchased the only share in a company. At the time of purchase, the company owned a commercial/residential development site (which had development approval for 6 commercial…

*Re Shail Superannuation Fund and FCT – Non-complying SMSF: deduction not allowed for misappropriated funds (wife trustee left holding the baby after husband trustee stole the fund) [Su3]

The AAT has affirmed that a SMSF was a non-complying fund for the year ended 30 June 2005 and that a deduction was not available for the misappropriation of funds by a trustee. Further, it affirmed that the base penalty of 75% of the shortfall was appropriate given the circumstances of the breach. The taxpayer…

*The CGT primary code for superannuation entities – draft legislation released to limit the trading stock exception [Su2]

In the 2011-12 Federal Budget, the Government announced that it would amend the ITAA 1997 to remove access to the trading stock exception to the CGT primary code rule for certain assets (primarily shares, units in a trust and land) owned by a complying superannuation entity. The Government today [Fri 13.1.2012] released draft legislation and…

*Refund of excess super contributions: draft legislation released [Su1]

The Treasury has released draft legislation and explanatory material on the Government’s proposal to refund certain excess concessional superannuation contributions announced in the 2011-12 Budget. The draft is available on the Treasury website. Under the proposal, eligible individuals would be given a once-only option to have excess concessional contributions up to $10,000 (not indexed) refunded…