Caporale v DCT – Application seeking stay, based on the Commissioner’s alleged failure to follow the “Model Litigant” policy, dismissed [38]

The Federal Court has dismissed an application for interlocutory relief by a self-represented taxpayer to stay enforcement of any judgment and current legal proceedings in relation to her dispute with the Commissioner in regard to the AAT’s decision to affirm the Commissioner’s objection decision concerning assessable income from a family petrol station business and a…

*Sent v FCT – High Court refuses taxpayers application for leave to appeal the decision that he had derived the bonuses he directed to a share trust [36]

The High Court has refused the taxpayer’s application for special leave to appeal against the decision of the Full Federal Court in Sent v FCT [2012] FCAFC 187. The Full Federal Court had dismissed the taxpayer’s appeal and held that the full amount of accrued and unaccrued bonus entitlements of id=”mce_marker”1.6m that were instead paid…

*Sanctuary Lakes Pty Ltd v FCT – Full Court confirms denial of $18m deductions in restructure of golf resort complex [37]

The Full Federal Court has unanimously dismissed the taxpayer’s appeal on the substantive issue from the decision in AAT Case [2012] AATA 404, Re Sanctuary Lakes Pty Ltd and FCT. In that case, the AAT confirmed that a taxpayer was not entitled to deductions for over id=”mce_marker”8m in relation to a range of outgoings incurred…

*OECD revises its Transfer Pricing Guidelines including safe harbours [33]

On 16 May 2013, the OECD approved the revision of Section E on safe harbours in Chapter IV of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (TPG). The OECD said the new guidance on safe harbours provides opportunities for countries to relieve some compliance burdens and to provide greater certainty for cases involving smaller…

*R&D tax incentive changes – draft legislation to limit the non-refundable tax offset to companies with aggregate assessable income under $20bn [29]

The Government on Tue 7.5.2013, released draft legislation designed to better target access to the R&D tax incentive. The proposed change would target support to companies with aggregate assessable income of less than $20 billion. The change would add a third tier to the R&D tax incentive [see EM extract below] whereby companies with aggregate…

*Australia-Switzerland tax treaty to be revised – negotiations concluded and will be signed soon (including access to Swiss Bank details) [31]

The Government has announced that negotiations for a revised Australia-Switzerland tax treaty have recently been concluded and that the governments of both countries will sign the revised treaty at the earliest opportunity, subject to the completion of their respective domestic approval processes. The Assistant Treasurer David Bradbury said the revised treaty would strengthen administrative assistance…

*Government announces it will not to proceed with planned increase to the Family Tax Benefit, Part A – due to commence 1 July 2013 [28]

Finance Minister Senator Penny Wong on Tue 7.5.2013, announced that the Government would not proceed with its 2012-13 Budget announcement to increase the maximum payment rate of FTB (Family Tax Benefit) Part A by $300 pa for families with one child and $600 pa for families with 2 or more children. For families receiving the…

*FCT v Greenhatch – High Court refuses taxpayer’s application for leave to appeal – only the discounted portion of the capital gain is included in the beneficiary’s assessable income [35]

The High Court refused the taxpayer’s application for special leave to appeal on Fri 10.5.2013. The taxpayer was seeking leave to appeal against the decision of the Full Federal Court in FCT v Greenhatch [2012] FCAFC 84. The Full Federal Court had unanimously upheld the Commissioner’s appeal and overturned a decision of the AAT and…

*Protecting the corporate tax base from erosion and loopholes: Government releases discussion papers for consultation [32]

The Treasurer on Tues 14.5.2013, as part of the 2013 Federal Budget announced a package of reforms to protect the corporate tax base from erosion and loopholes. Treasury has released the following issues paper and proposals papers: – Removing the tax advantages available to multiple entry consolidated groupsthis Issues Paper outlines the process for developing…