This TD issued on Wed 3.12.2014, states that where a right to acquire a beneficial interest in a share is granted subject to shareholder approval and an employee acquires only a right to have the matter put to the shareholders and nothing more, that right is not an “indeterminate right” within the meaning of s 83A-340(1)…
This Ruling, released on Wed 17.12.2014, sets out the Commissioner’s views on the transfer pricing documentation an entity should have kept in order to meet the requirements of Subdiv 284-E to the Taxation Administration Act 1953. An undocumented transfer pricing treatment, if ultimately found to be incorrect, is taken to be not reasonably arguable, and…
This Ruling, released on Wed 10.12.2014, deals with the application of s770-75 of the ITAA 1997 (foreign income tax offset (FITO) limit) to an Australian resident taxpayer deriving gains and losses from foreign currency hedging transactions undertaken to mitigate the foreign currency fluctuation risk attached to the market value of a portfolio of assets. Broadly,…
The ATO has released a Decision Impact Statement on the Full Federal Court’s decision in Akers as a joint foreign representative of Saad Investments Company Limited (in Official Liquidation) v DCT [2014] FCAFC 57. In that case, Cayman Island liquidators were unsuccessful in seeking to defeat a Deputy Commissioner of Taxation’s claim to recover a…
A taxpayer has appealed to the Federal Court against the decision in AAT Case [2014] AATA 854, Re Agius and FCT. In that case, the AAT held the taxpayer was not a resident of Australia for the years in question, but he did derive Australian-sourced income. [LTN 242, 15/12/14]
The taxpayer has lodged an application for special leave to appeal to the High Court against the decision of the Full Federal Court in SPI PowerNet Pty Ltd v FCT [2014] FCAFC 36. The majority of the Full Court (Davies J dissenting) had dismissed the taxpayer’s appeal and held that payments it made to the State…
A Deputy Commissioner of Taxation has been successful before the Qld District Court in seeking summary judgment against an individual for a director penalty arising from unpaid PAYG liabilities of a company. The individual did not contest most of the material facts relied upon by the Deputy Commissioner. He accepted that the company failed to…
The AAT has dismissed a taxpayer’s application that he was entitled to include in the cost base of a Queensland property construction costs of id=”mce_marker”78,000 he incurred under a contract he entered with his own company. However, the AAT found the taxpayer’s claims lacked substance for several reasons including the following. The construction contract was…
The AAT has upheld default assessments against husband and wife taxpayers. The AAT said that in 2010, the husband was found guilty of the offence of carrying on the business of unlawfully trafficking in a dangerous drug and was sentenced to imprisonment for 8 years. Part of the Crown case was that during those years…
In a lengthy decision handed down on Fri 19.12.2014, the Federal Court has found that 5 companies were resident of Australia and liable to pay tax here on the proceeds of the sale of shares in ASX listed entities. This case concerned appeals from decisions of the Commissioner disallowing 5 taxpayers’ objections to a number…