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

*Coalition releases plan and policy priorities – cut tax; superannuation certainty [6]

In its recently released “Our Plan. Real Solutions for all Australians” statement, the Federal Coalition pledged to: abolish the carbon tax – “the first piece of legislation the Coalition will introduce” said Mr Abbott; abolish the mining tax; fund personal income tax cuts; deliver a “modest” cut in the company tax rate “funded from savings…

ACE Insurance Limited v Trifunovski & Ors – Insurance agents found to be employees, not contractors: company’s appeal dismissed [13]

The Full Federal Court has dismissed an appeal by a company against a July 2012 decision of the Federal Court (Perram J) in ACE Insurance Limited v Trifunovski (No 2) [2012] FCA 793. The Federal Court had imposed a civil penalty on the company, Combined Insurance Company of America Ltd (“Combined”), for treating insurance agents as independent contractors…

*Weeks v FCT – Full Federal Court holds that public service ‘redundancy’ was not tax law ‘genuine redundancy payment’ – senior ATO officer [11]

The Full Federal Court has unanimously dismissed the appeal of the taxpayer, a former senior tax officer, and confirmed that a termination payment made to her because her services could no longer be effectively utilised by the Tax Office was not a “genuine redundancy payment” under s 83-175 of the ITAA 1997. The taxpayer was offered,…

*Healey v FCT – Taxpayer’s appeal dismissed: CGT liability confirmed as onus not satisfied that ‘market value substitution rule’ applied to cost base [10]

The Full Federal Court has unanimously dismissed the taxpayer’s appeal from Healey v FCT [2012] FCA 269. In that case, the taxpayer, a beneficiary of a trust, was held to be assessable on a capital gain of $14m that arose from the sale of shares by the trust for $17m (which had previously been agreed…

NSW land tax: Chief Comr of State Revenue v Metricon Qld Pty Ltd – dominant purpose test, in primary production exemption, involves assessing competing physical uses (grazing cattle) not the ‘land-bank’ purpose of holding the land

In confirming that a land development company qualified for the primary production land tax exemption, the NSW Court of Appeal has ruled that any competing use of the land considered in applying the dominant use test must be a physical use of the land. The taxpayer is a property developer, which owns a number of…

Anglo American Investments Pty Ltd v DCT – illegally obtained material from the Cayman Islands did not prevent collection of the tax; whether this was “conscious maladministration” was beyond the State Court’s jurisdiction

The NSW Court of Appeal has unanimously dismissed a taxpayer’s application for leave to appeal the decision in the Commissioner’s favour in his debt recovery case: DCT v Anglo American Investments Pty Ltd & Ors [2016] NSWSC 975 (note the other 5 applicants, in this first instance case, set out below). In those cases, the…

‘SMSF Association’ and ATO announce strategic 3 year partnership to jointly to ensure effective regulation and integrity of the SMSF sector

The SMSF Association and Australian Tax Office (ATO) have announced a three-year strategic partnership, effective 15 February 2017. In a statement of intent released today, the Association and ATO outlined their intentions to work together to ensure effective regulation and integrity of the SMSF sector. The goals include improve and maintain the integrity and professionalism…