*Complaints about tax disputes: Ombudsman appeared at Parliamentary inquiry [13]

The Commonwealth Ombudsman, Mr Colin Neave, appeared before the Federal Parliamentary Standing Committee on Tax and Revenue on Wed 24.9.2014 to discuss complaints made to his office on tax disputes. The Ombudsman has identified the following areas of concern: 1.the ATO’s engagement with taxpayers prior to litigation; 2.perceptions of a power imbalance between the ATO…

*Re Coshott and FCT – Settlement payment for damages subject to CGT – and no cost base for legal costs (because there was no evidence) [15]

The AAT has affirmed that a taxpayer was liable to CGT on a settlement payment of $350,000 made to her in respect of litigation she pursued for damages for breach of contract and negligence. In particular, the AAT found that CGT event C2 applied to the payment, and that the CGT assets in question were…

*Task Technology Pty Ltd v FCT – software licence use payments held to be royalties [14]

The Full Federal Court has unanimously dismissed the taxpayer’s appeal from the decision in Task Technology Pty Ltd v FCT [2014] FCA 38 and confirmed that licensing payments by the taxpayer company (an Australian distributor) to a Canadian software supplier were not excluded from being royalties that were subject to Australian withholding tax. The taxpayer…

Parliamentary committee recommends tax changes re Northern Australia [8]

Parliament’s Northern Australia Committee Thur 4.9.2014, tabled in both Houses its final report on the development of Northern Australia, titled Pivot North. The Committee was tasked with the important role of helping to define the future of Australia’s North. The report made 42 recommendations including investigation of the potential and practicality of special economic zones,…