Chemical Trustee Limited v DCT Judgment to DCT for unpaid tax debt: ATO view on Chemical Trustee Ltd [25]

The ATO has issued a Decision Impact Statement on the Full Federal Court’s decision in Chemical Trustee Limited v DCT[2014] FCAFC 27. The Statement sets out the ATO response to the case which it said concerned whether the Commissioner, having obtained judgment for an income tax debt, was prohibited from obtaining judgment for an income…

*Re Coshott and FCT – Taxpayer appeals decision that CGT applied to settlement proceeds to an action for breach of contract and negligence [24]

The taxpayer has appealed to the Federal Court against the decision in AAT Case [2014] AATA 622, Re Coshott and FCT. In that case, the AAT affirmed that a taxpayer was liable to CGT on a payment made to her in respect of the settlement of litigation she pursued for breach of contract and negligence.…

*Windoval Pty Limited (Trustee) v Donnelly (Trustee in Bankruptcy) – Bankruptcy trustee claws back gift to family trust intended to defeat tax liability [22]

The Full Federal Court has refused to order a retrial in relation to a court declaration allowing a bankruptcy trustee to claw-back a former tax lawyer’s $5m gift to his family trust on the grounds that it was intended to defeat an impending tax liability. The former tax lawyer had made $5m in contributions to…

*Soong v Director of Public Prosecutions (Cth) – Conviction upheld for failure to provide security for tax liabilities [21]

The NSW Supreme Court has dismissed a company director’s appeal against a Local Court ruling that upheld her being convicted and fined for failing to provide security for tax liabilities. In January and April 2011, the director had received a total of 7 notices from the DPP to give security for the due payment of future tax-related liabilities. On…

*Re KNNW and FCT – Bulk of tax debt released on hardship grounds but application for release of the balance denied [20]

The AAT has upheld the Commissioner’s decision refusing to release a taxpayer from his tax debt of $26,045 on the grounds of “serious hardship”. The tax debt arose after the Commissioner denied deductions claimed by the taxpayer under a managed investment scheme promoted by a registered tax agent. The Commissioner granted the taxpayer’s application to…

*Re Hicks & Associates Pty Ltd, Hicks and FCT – Assessments treating $800,000 in purported loans as income upheld [19]

The AAT has ruled that a taxpayer had failed to discharge the onus of proving that assessments for income totalling over $867,000 deposited into his bank accounts over a 4-year period were not income. The taxpayer argued that the amounts were received as loans or capital from fellow members of an informal syndicate established for…

*Re Riley and FCT – Compensation payment for domestic assistance assessable as ordinary income [18]

In a decision handed down on Fri 12.9.2014, the AAT has affirmed a decision of the Commissioner that a payment made to a taxpayer for compensation for domestic assistance was assessable as ordinary income under s 6-5 of the ITAA 1997. In February 1997, the taxpayer’s husband suffered a serious injury while white water rafting during a team…