*Hancock v Rinehart – Commissioner denied access to court files in Rinehart case until matter completed, though could look at specified material [21]

The Supreme Court of NSW has refused the Tax Commissioner’s application to access a court file in relation to the ongoing Rinehart and Hancock proceedings in relation to the possible tax consequences of extending the vesting date of the trust (including any tax professional advice given on the matter). In refusing the Commissioner access to…

*Palermo v Palermo [No 2] – Business corporate and trust arrangements cannot be re-interpreted as a partnership [20]

The Supreme Court of WA has held that 2 brothers, who conducted an accounting practice and other businesses, were not in partnership. The 2 brothers had spent some 30 years in business together including an accounting practice, property development, share dealing, corporate consulting and farming. Over that time, they had used various structures such as…

*Deductions denied for $1m losses in MIS investment – going back 4 years under scheme to obtain ‘tax benefit’ qualification [19]

The AAT has affirmed objection decisions made by the Commissioner in relation to amended assessments issued to the taxpayer for the 2006 and 2007 income years to deny deductions of $518,000 and $416,000, respectively, concerning partnership losses in respect of a taxpayer’s investment in a Managed Investment Scheme (MIS), Great Southern Plantations 2005 Project, for…

*Re VPFD and FCT – Deductions relating to a rental property business mostly disallowed [17]

A taxpayer has been mostly unsuccessful before the AAT in challenging the Commissioner’s decision to disallow a variety of deductions relating to rental properties. The taxpayer, who worked full-time as an industrial chemist, owned rental properties with her husband and had done so for many years. In the income years in question (2003, 2004 and…

*Re Mathoura Property Pty Ltd as Trustee for the Mathoura Property Trust and FCT – Taxpayer failed to take reasonable care in preparing BAS [16]

The AAT has affirmed an administrative penalty imposed on a property development company for failing to take reasonable care by not including the proceeds from the sale of an apartment in the relevant BAS. In July 2010, the taxpayer entered into an “off the plan” contract to sell an apartment for about $3.095m. In early December 2011, the purchaser…

*Re The Study and Prevention of Psychological Diseases Foundation Incorporated and FCT – Psychological diseases foundation denied tax-exempt charity status [14]

The AAT has affirmed the Commissioner’s decision that The Study and Prevention of Psychological Diseases Foundation Incorporated  had not met the requirements for endorsement as an income tax exempt charity under Subdiv 50-B of the ITAA 1997. The Foundation was incorporated in 2005 and had previously been granted tax-exempt status under s 50-110, was endorsed as…

*Re PNGR & Anor and FCT – significant investment properties bought with only modest income, amendments made outside 4-year period for fraud or evasion [13]

The AAT has affirmed amended assessments issued by the Commissioner to husband and wife taxpayers outside the 4-year amendment period as it determined there had been fraud or evasion. The taxpayers conducted a number of businesses including a tobacco supply and snack bar business in a partnership. The AAT said they reported “modest income” from…

*Re Gutteridge and FCT – Taxpayers get CGT relief as trust was a ‘small business entity’ – appointor father was de facto director [12]

The AAT has allowed husband and wife taxpayers’ appeals and held that the husband alone was the person who controlled the relevant Trust within the meaning of s 328-125(3) of the Income Tax Assessment Act 1997 (‘ITAA97’) and therefore that the Trust was entitled to certain CGT Small Business Reliefs. A company was incorporated in August 2005 and…