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

Refunding overpayments of GST: latest draft better but still not good enough, per ASFA submission [55]

ASFA says the second round of exposure draft legislation regarding the circumstances where the Commissioner will refund an overpayment of GST is an improvement on the previous draft. However, in its submission to Treasury, ASFA said it was concerned that the draft continues to prevent taxpayers from seeking refunds of GST in legitimate circumstances. Among…

*R v Seller; R v McCarthy – Wickenby case: permanent stay for releasing privileged material to the DPP overturned – back to the trial [34]

The NSW Court of Appeal has allowed the Crown’s appeal and ordered the setting aside of a permanent stay of any proceedings on indictments against 2 men concerning alleged false tax deductions claimed regarding whisky distillation schemes. That stay had been granted in the 17 August 2012 decision of the NSW Supreme Court in R v Seller;…

*DCT v McGuire & Anor – Even limited partners jointly and severally liabile to the tax debts of the limited partnership without limit [35]

The NSW Supreme Court has held that s 60(1) of the Partnership Act 1892 (NSW) did not limit the liability of 2 partners (the taxpayers) to an RBA deficit debt, including the GIC, of a limited partnership. The Commissioner established a Running Balance Account (RBA) in the name of the 3 members of the limited partnership,…

DCT v Ciccarello & Ors – DPN valid despite “horizontal” errors (lining up the period, amount withheld and liability to remit) – not misleading [36]

The District Court of South Australia has dismissed an appeal from the decision of a Master of the Court which upheld the validity of a Director’s Penalty Notice (DPN) which contained 2 “horizontal” errors in a DPN issued to the directors. The mistakes occurred in the “horizontal” lines of the notice which set out 6…

*Reardon & Anor v DCT – Court confirms grant of summary judgment for DPNs which turned on retrospective legislation to reverse the Soong case [37]

In a 2:1 majority decision, the Court of Appeal of the Supreme Court of Queensland has dismissed an appeal by 2 directors from the decision of the court at first instance to grant summary judgment against them for amounts of $297,000 each for directors’ penalties imposed pursuant to s 222AOC of the ITAA 1936, and in…

*Agius v The Queen – High Court gives the accused special leave to appeal in Wickenby case, where 2 conspiracies alleged (before and after Criminal Code) [38]

The High Court has granted a taxpayer special leave to appeal from the decision of the NSW Court of Criminal Appeal in Agius & Ors v R [2011] NSWCCA 119, concerning an issue regarding the proof of an alleged offence of conspiracy. The High Court has released a transcript of its decision – Agius v…

*Visy Packaging Holdings Pty Ltd v FCT – losses on sales of unwanted businesses were deductible as they were to be on-sold at a profit [40]

The ATO on Tue 12.3.2013, released a Decision Impact Statement giving its views on the decision of Middleton J of the Federal Court in [2012] FCA 1195. The Federal Court held that various companies that were part of the Visy group were entitled to a deduction under s 8-1 of the ITAA 1997 for losses of some…

*Denlay v FCT – Commissioner can use illegally obtained information in raising Amended/Assessments without affecting their validity – Full Federal Court [41]

The ATO Fri 15.3.2013, released a Decision Impact Statement on the Full Federal Court’s decision in Denlay v FCT (2011) 83 ATR 625. In that case, the Full Federal Court unanimously confirmed that the Commissioner was not in breach of the criminal code in using illegally obtained information to issued amended assessments to a taxpayer…