*FCT v Ludekens & Anor – Commissioner fails in applying civil penalty rules to “promoters” of tax schemes [23]

In the first matter of its kind before the courts, the Commissioner has been unsuccessful in seeking to impose civil penalties on alleged scheme promoters under Div 290 of the TAA for the promotion of tax avoidance schemes. The matter involved 2 men who were marketers (and investors) in a managed investment scheme for which Product…

*DCT v Murray – Court makes orders for recovery of almost $1m where taxpayer had not filed a Part IVC appeal or opposed the collection of the tax [24]

The Federal Court has upheld assessments and penalties against a taxpayer totalling almost id=”mce_marker”m. A Deputy Commissioner of Taxation had sought to recover from the taxpayer debts payable for income tax and penalties pursuant to assessments issued in respect of the years of income ended 30 June 2009, 30 June 2010 and 30 June 2011.  As at 30 January 2013, the debts total…

*VN Railway Pty Ltd & Anor v FCT – Understatement of income by supermarket business: penalties upheld; super deductions denied [27]

The Federal Court has upheld a 75% tax shortfall penalty imposed on the trustee of a family trust operating independent supermarkets after ruling that it was open for the AAT to find that the taxpayer had “intentionally disregarded” its tax obligations under s 226J of the ITAA 1936. The Court dismissed the taxpayer’s appeal from AAT…

*Re Picton Finance Ltd and FCT – Vanuatu share trader company has partial win [29]

The AAT has held that certain share trading activities by a Vanuatu incorporated company were Australian-sourced, but that the taxpayer had discharged its onus of demonstrating that an assessment relating to the 2007 year was excessive. The taxpayer was incorporated in Vanuatu in December 2003. Its members were Vanuatu residents associated with the accountancy practice known as…

*Re Carter and FCT – Small business benchmarks bring florist undone re income tax and GST [32]

The AAT has dismissed a taxpayer’s appeal against income tax and GST assessments issued following an ATO audit of her florist business. The taxpayer conducted a GST-registered florist business and lodged BASs for the monthly tax periods from 1 July 2007 to 30 June 2008. In her 2008 tax return, she reported “Cost of sales” for the business of…

Re Walters and FCT – AAT has power to review objection decision despite objection being lodged before amended assessment [33]

The AAT has determined that it has the jurisdiction to review an objection decision made by the Commissioner in relation to both amended assessments of primary tax and assessments of penalties issued to husband and wife taxpayers who were beneficiaries of a family trust. This was despite the fact that their objections to the assessments…