Re Verschuer and FCT – Late super contribution via clearing account hit with 93% tax [59]

An employer contribution via a superannuation clearing account has resulted in a $69,665 excess superannuation contributions tax liability for a taxpayer, representing an effective tax rate of 93%. On 27 June 2008, the taxpayer’s employer paid a “top-up” superannuation contribution to a clearing account operated by a superannuation fund (Colonial First State). However, the employer contribution of…

Re Bayconnection Property Developments Pty Ltd and Ors and FCT – Input tax credits denied: not carrying on an enterprise – maximum penalties upheld too [51]

The AAT has held that 5 company taxpayers were not carrying on an ‘enterprise’ and were therefore not entitled to input tax credit (ITC) claims for tax periods ranging from February 2005 to January 2009. It also affirmed the 75% penalty imposed with a 20% uplift for the relevant periods. The taxpayers were all owned by one or more…

Re Tom and FCT – GST refunds sought for misclassified directors’ fees, but claim denied because it was more than 4 year prior to notifying the ATO [50]

The AAT has held that a taxpayer’s notice to the Commissioner of his entitlement to GST refunds for the periods 30 September 2005 to 31 December 2006 was lodged outside of the relevant 4-year period and therefore he was not entitled to the refunds claimed. The taxpayer carried on a retailing upholstery business. For the relevant periods, he lodged…

Re Yacoub and FCT – GST: taxpayer’s appeal dismissed re earlier deregistration date for applicable entity [49]

In a decision dated 29 June 2012 (but released by the AAT on 11 January 2013), the AAT has dismissed an appeal by taxpayers concerning the Commissioner’s decision regarding the date of GST deregistration of an entity operated by the taxpayers. The facts are the same as those in Yacoub v FCT [2012] FCA 678. The matter broadly concerned…

Re Dandenong Motors Unit Trust and FCT – No GST refunds for net negative amounts for car dealership [48]

The AAT has dismissed a taxpayer’s appeal and held that the Commissioner was correct to deny it GST refunds for net negative amounts. Between 1987 and June 2003, the taxpayer conducted a car dealership. As a part of its business, it received hold-back payments made by parties (manufacturers or importers of motor vehicles) from whom it bought…

*High Court gives Commissioner leave to appeal in Unit Trend Services Pty Ltd v FCT – where the FFC split on whether GAAP applied to pre 16 March 2005 choices under the Margin Scheme [47]

The High Court has referred to an enlarged bench of the Court the Commissioner’s application for special leave to appeal against the decision of the Full Federal Court in Unit Trend Services Pty Ltd v FCT [2012] FCAFC 112. The appeal concerns the application of the GST anti-avoidance provisions in Div 165 of the GST Act.…

ATO data-matching program: credit and debit card sales by businesses [46]

The ATO has advised that it has obtained data that identifies credit and debit card sales made by Australian businesses in the 2011-12 financial year from various banks including: Commonwealth Bank of Australia; St George Bank; American Express Australia Limited; Diners Club Australia; Westpac Banking Corporation; Australia and New Zealand Banking Group Limited; National Australia…

*PS LA 2013/1 – Commissioner’s guidance on how to prepare an statement of facts and reasons under s13 of the ADJR Act [45]

The ATO Thur 31.1.2013, released Practice Statement PS LA 2013/1 outlining the guidelines to be followed by tax officers preparing statements of reasons pursuant to s 13 of the Administrative Decisions (Judicial Review) Act 1997 (ADJR Act). The Practice Statement states that s 13 imposes an obligation on decision makers in the ATO to provide a written…

CR 2013/7-10 – Early retirement; demerger; FITO and ESS; FBT parking [44]

The ATO on Wed 30.1.2013, issued the following Class Rulings: CR 2013/7: Queensland Government Department of Education Training and Employment – early retirement scheme. It applies from 30 January 2013 to 31 December 2013. The Ruling broadly states that the scheme is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. CR 2013/8: Demerger of…