*Re Ozone Manufacturing Pty Ltd and FCT – R&D tax offset denied on ‘beverage purifier devices’ [32]

The AAT has upheld the Commissioner’s disallowance of a taxpayer’s claim for the R&D tax offset. The taxpayer carries on a business designing and manufacturing what it calls “environmental technology”. As part of its business, the taxpayer claimed it undertook R&D activities in relation to a project, which sought to develop 3 beverage purifier devices.…

*Re Trustee for the Farant Family Trust and FCT – Delivery drivers were common law employees: PAYG Liabilities; SGC & FBT assessments upheld [28]

The AAT has upheld the Commissioner’s assessments finding that drivers employed by the taxpayer were common law “employees” of the taxpayer and not independent contractors. The taxpayer had an agreement with a company for the delivery of the company’s bakery products. During the relevant period, the taxpayer engaged a number of “drivers” to make the…

Re Matthews and FCT – AAT has no jurisdiction to hear taxpayer’s claim for review of BAS liabilities [33]

The AAT has held that it did not have jurisdiction to consider a taxpayer’s application for review of the ATO’s ‘re-raising’ of the taxpayer’s debts for unpaid PAYG instalments, GST and GIC. In December 2011, the ATO informed the taxpayer that, as a result of the lodgment of his tax return for the year ended 30 June 2011, a…

*Derrin Brothers Properties Limited v DCT – Wickenby: No grounds to appeal decision to refuse to grant stay of summary judgment [25]

The Federal Court has dismissed a taxpayer’s application for leave to appeal from the decision in DCT v Hua Wang Bank Berhad (No 3) & Ors [2012] FCA 594 in which the Federal Court refused to grant the taxpayer a stay of enforcement of a summary judgment obtained by the Commissioner against the taxpayer for…

*Indian taxpayer a ‘resident’ despite absences from Australia – but he and his wife did own a house here and she and their adult children lived here [30]

The AAT has held that a taxpayer had not discharged his burden of proving that an assessment was excessive, and effectively held that he was an Australian “resident” in the 2011 income year. The facts were as follows. The taxpayer is an engineer and was born in India and remains an Indian citizen. He came…

*Taxpayer’s appeal dismissed as ‘share awards’ treated as Div 13E Qualifying Rights that vested just before the GFC – 25% penalty upheld too [27]

The AAT has affirmed the Commissioner’s views and held that employee share scheme awards received by a taxpayer should be treated as qualifying rights and therefore assessable, and that penalties imposed by the Commissioner should be upheld. The taxpayer was at all material times a senior officer in the Australian subsidiary of a large multi-national…

*Capping of self-education expense deductions from 1 July 2014: Treasury paper released [15]

The Government has released a Discussion Paper seeking comments on its proposal to introduce a $2,000 cap on tax deduction claims for work-related self-education expenses per person from 1 July 2014. The proposal was announced by the Treasurer on 13 April 2013 “as part of a package of reforms to make a down-payment on the National Plan for School…