*Re Clemens, Jaczenko, Koustrup and FCT – Backpackers not residents of Australia – over 182 days but ‘usual place of above’ outside Australia [26]

The AAT has found that 3 foreign national backpackers had their usual place of abode outside of Australia for the year ended 30 June 2013 and were therefore not residents of Australia for tax purposes for that year. The backpackers were from Germany, Canada and Denmark. While in Australia, they worked at various places, went sightseeing, etc.…

*Re Morrison and FCT – Superfund’s loan to Hua Wang Bank etc a sham; ‘fraud or evasion’; assess loan as benefits; no interest deductions [24]

The AAT has held that an arrangement between husband and wife taxpayers and a bank re a loan to purchase a property was a sham. The taxpayers financed the purchase for id=”mce_marker”.1m of an apartment on the Queensland Sunshine Coast in part by a loan of $600,000 from the St George Bank. The AAT said…

*FCT v Oswal (No. 3) – Taxpayer fails to stay Commissioner’s action to have mortgage declared void (because it was to ‘defraud creditors’) [23]

A taxpayer has been unsuccessful in her application to seek a stay of proceedings that were brought by the Commissioner in which he sought a declaration that a mortgage she registered over 2 of her properties was void on the basis that she entered into them with an intention to defraud her creditors, which included…

*Donoghue v FC of T – ‘conscious maladministration’ using legally privileged information resulted in assessments being set aside [21]

The Federal Court has held that income tax assessments issued to a taxpayer were invalid because the Commissioner had drawn upon information that was subject to legal professional privilege and received by the ATO from a third party without the authorisation of the taxpayer. The Commissioner’s process, which included a tax officer’s wilful disregard of…

FC of T v Moignard – Taxpayer did not establish not ‘presently entitled’ to the Trust’s gain beneficially or that the assessment was excessive [20]

The Commissioner has been successful in an appeal to the Federal Court against an AAT decision that an individual taxpayer was not assessable on sales proceeds deposited into his personal bank account. In that decision (reported at 2014 ATC ¶10-364), the AAT was satisfied that the sales proceeds were received in the taxpayer’s capacity as…

*FCT v McGrouther – Commissioner’s appeal allowed: taxpayers can withdraw s14ZYA notice that could lead to a deemed disallowance of an objection [19]

The Full Federal Court has unanimously allowed the Commissioner’s appeal from the decision in McGrouther v FCT [2014] FCA 1102. In that case, the Court ruled (as the taxpayers had sought), that the taxpayers could not withdraw a notice they had given the Commissioner under s 14ZYA of the Taxation Administration Act 1953 that triggers the…

*Korda & Ors v Australian Executor Trustees (SA) Limited – High Court: Sale proceeds from timber investment scheme not held on trust for investors [18]

The High Court [on Wed 4.3.2015] ruled that the documentation for a timber plantation investment scheme did not support the existence of an express trust in favour of the scheme investors over the proceeds from the sale of the timber and scheme land. In so finding, the High Court unanimously allowed the appeal from the…

Lifting standards in financial services industry: Govt paper released [17]

The Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into proposals to lift the professional, ethical and education standards in the financial services industry (PJC) presented its recommendations to Government on 19 December 2014. The PJC report outlines a comprehensive model to increase the professional standards of advisers, involving a co-regulatory approach where Government, professional associations,…