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

FCT v Desalination Technology Pty Limited – relevant R&D expenditure ‘incurred’ [29]

The Commissioner has made application for leave to appeal to the Full Federal Court against the decision of Perram J in FCT v Desalination Technology Pty Limited [2014] FCA 1120. The Federal Court dismissed the Commissioner’s appeal and held that the taxpayer had “incurred” the relevant expenditure for the purposes of claiming an R&D tax offset.…

*FCT v Australian Building Systems Pty Ltd (in liq) & Anor – Commissioner applies for special leave re Liquidator’s s254(1)(d) for CGT [28]

It is understood the Commissioner has filed applications for special leave to appeal to the High Court against the Full Federal Court decision in FCT v Australian Building Systems Pty Ltd (in liq) & Anor [2014] FCAFC 133. The Full Federal Court had confirmed that s 254(1)(d) of the ITAA 1936 does not require a liquidator…

*Lend Lease Development Pty Ltd & Ors v Comr of State Revenue – HC hearing – construction payments to vendor NOT ‘transfer’ consideration [26]

A Full Court of the High Court in Canberra on Tue 4.11.2014 also began hearing the Commissioner of State Revenue’s appeals against the Victorian Court of Appeal decision in Lend Lease Development Pty Ltd & Ors v Comr of State Revenue [2013] VSCA 207. The Court of Appeal had allowed the appeal of the 3…

*MBI Properties Pty Ltd v FCT – High Court hears appeal against decision that after the grant of a lease there is no ongoing ‘supply’ [25]

The further hearing of the Commissioner’s appeal against the Full Federal Court decision in MBI Properties Pty Ltd v FCT [2013] FCAFC 112 began on Tue 4.11.2014 before a Full Court of the High Court in Canberra. It is expected this will be the final day of the appeal. The Full Federal Court had overturned…

*Re The Trustee for the Confidential Trust and FCT – Minor trust beneficiaries not excepted persons and taxed at 45% [23]

The AAT has held that 2 minor beneficiaries of a trust were not excepted persons and the income that was distributed to them in the 2012 income year was not excepted trust income. The director of a trust settled a workers’ compensation claim in 2010 and received $400,000 under that settlement. He contributed the entire…