*McCarthy v FCT – Federal s39B matter not transferred to the NSW Supreme Court where criminal proceedings were instituted but it was stood over [30]

In a complex procedural matter, the Federal Court has refused the application of 2 taxpayers to transfer the whole or part of their proceedings to the NSW Supreme Court. At the same time, it held that the taxpayers’ applications to have assessments set aside should be stood over generally in the circumstances. The taxpayers brought…

*Fowler v FCT – Share option rights acquisition date was not on making employment contract but later on shareholder approval of options [25]

In a decision handed down on Wed 3.7.2013, the Full Federal Court has unanimously dismissed a taxpayer’s appeal, and held that for the purposes of the former ITAA 1936 employee share scheme (ESS) provisions (Div 13A), a taxpayer acquired a right with respect to share options approximately 2 months later than when he contended he acquired…

*Re Theglory v Secretary, Department of Families, Housing, Community Services and Indigenous Affairs – Legal expenses were capital and not an allowable deduction [34]

The AAT has held that a taxpayer’s legal expenses incurred in protecting her interest in a taxi plate, licence, and vehicle was not an allowable deduction under s 8-1 of the ITAA 1997 as the costs were of a capital nature. The taxpayer is the recipient of a carer allowance for her husband, which is determined…

*FCT v Residence Riverside Proprietary Limited atf the D&J Discretionary Trust and atf the D&J Investment Trust – no grounds for transferring tax dispute to family court under cross-vesting rules [29]

The Federal Court has dismissed an application by the former wife of a taxpayer who was liable to the Commissioner for a tax debt of over id=”mce_marker”1.4m to have the tax matter currently being dealt with by the Federal Court transferred to the Family Court in Western Australia under the cross-vesting rules. The former wife…

*Sea Shepherd Australia Ltd v FCT & Anor – taxpayer not DGR – did not provide direct care to animals (not just wildlife) that have been mistreated etc. [24]

In a 2:1 majority decision handed down on Wed 3.7.2013, the Full Federal Court (Dodds-Streeton J dissenting) affirmed the Commissioner’s decision that Sea Shepherd Australia was not entitled to be endorsed as a deductible gift recipient (DGR). The Commissioner had determined that Sea Shepherd’s activities did not satisfy para (a) of Item 4.1.6 in s 30-45 of…

*FBT statutory formula method for calculating motor vehicle benefits will be abolished to partly fund the earlier conversion of the Carbon Tax into an ETS [16]

The Prime Minister and the Treasurer on Tue 16.7.2013, formally announced that the Government would bring forward the start date of emissions trading to 1 July 2014. From that date, a floating price on carbon will apply. Under the previous arrangements, the carbon price was to be $25.40 per tonne from 1 July 2015. Under a floating price, the…

*Emissions Trading Scheme with flexible (market linked) price to commence one year early – PM and Treasurer announce [15]

The Government has announced that it will move to an emissions trading scheme a year earlier on 1 July 2014 and that the fixed price of carbon will be replaced with a floating [market based] price from that date. Finance Minister Penny Wong said the Government would need to legislate ahead of the 2014-15 start of the…

*Australian-Mauritius and Australian-Turkey tax Double Tax Agreements enter into force as Australian laws [7]

The Assistant Treasurer has gazetted a notice, under s 4A of the International Tax Agreements Act 1953, specifying that the allocation of tax rights regarding the income of certain individuals and establishing a procedure in regards to transfer pricing adjustments between Australia and Mauritius entered into force on 31 May 2013. In addition, a notice was also gazetted…