John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

CR 2013/56-60 – Transfer payments; return of capital; scrip-for-scrip; sport support scheme; performance rights [55]

The ATO on Wed 31.7.2013, released the following Class Rulings: CR 2013/56: Treatment of transfer payments to employees of NSW Roads & Maritime Services following the outsourcing of road maintenance operations to a private operator. It applies from Wed 31.7.2013 to 30 June 2015. Broadly, the Ruling states that the proposed transfer payment is in consequence of…

*Symond v Gadens Lawyers Sydney Pty Ltd – solicitors gave negligent advice re withdrawing funds from company for tax purposes [45]

The NSW Supreme Court has held that solicitors who advised Mr John Symond, founder of “Aussie Home Loans”, were negligent in the advice they gave him in relation to a revised ownership structure to allow him access to funds in a tax advantageous manner for the construction of his new home but which, instead, resulted in a significant…

*DCT v Ekelmans & Ors – Final asset freezing orders postponed as they were “without legitimate purpose” until recovery process identified [44]

The Supreme Court of Victoria has held that asset freezing orders obtained by a Deputy Commissioner of Taxation were “without a legitimate purpose”. The Deputy Commissioner had brought proceedings under r 37A of the Supreme Court (General Civil Procedures) Rules 2005 (Vic) for freezing orders over assets to the approximate value of assessments issued to…

*Re Vision Intelligence Pty Ltd and FCT – R&D outgoing not incurred: taxpayer liable for 25% shortfall penalties [43]

The AAT has held the R&D expenditure claimed by a taxpayer was not incurred in the year ended 30 June 2009 and as such it affirmed the Commissioner’s decision to disallow the deduction and impose a shortfall penalty. The taxpayer was an Australian resident company operating in the engineering and software development surveillance industry. It had entered…