*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…

Tax Newsletter FCT v Crown Insurance (Vanuatu) – High Court refuses Commissioner leave to appeal decision that insurance income did not have an Australian source [21]

The High Court has dismissed the Commissioner’s application for special leave to appeal against the decision of the Full Federal Court in FCT v Crown Insurance Services Ltd [2012] FCAFC 153. The Full Federal Court had dismissed the Commissioner’s appeal from a 2011 AAT decision that held that insurance premium income derived by a non-resident…

*Preventing “dividend washing”: Discussion Paper released by Treasury [14]

The Government Mon 3.6.2013, released a Discussion Paper on Preventing dividend washing. In the 2013-14 Federal Budget on 14 May 2013, the Government announced reforms to close, with effect from 1 July 2013, a loophole it said currently enabled sophisticated investors to engage in so-called “dividend washing”. The Government said this was a process that allowed sophisticated investors to…

Weeks v FCT – High Court refuses special leave to appeal from decision that termination payment was not a ‘genuine redundancy payment’ [23]

The High Court has refused applications by the taxpayer for special leave to appeal against the decisions of the Full Federal Court in Weeks v FCT [2013] FCAFC 2 and Weeks v FCT and Commonwealth of Australia [2013] FCAFC 78. In the first case, the Court had confirmed that a termination payment made to the…

*Agius v The Queen – Wickenby: High Court dismisses taxpayer’s appeal against conviction against second charge [20]

A full court of the High Court on Wed 5.6.2013, unanimously dismissed the appeallant’s appeal against his conviction in the NSW Supreme Court for conspiring to dishonestly cause a loss to the Commonwealth, contrary to s 135.4(5) of the Criminal Code (Cth). The appeallant was charged with 2 counts of conspiracy, both of which arose out…

Government to review regulatory arrangements of employee share schemes for start-ups [17]

The Government announced on Wed 12.6.2013, that it will undertake [amongst other things] a review into employee share schemes (ESS) to help address the barriers faced by start-up companies in attracting and retaining staff. The ESS review will consider what measures could help address the barriers faced by start-up companies, such as: developing guidance to…