BCI Finances Pty Limited (in liq) v Binetter (No 4) – Wickenby: Major victory for Commissioner: recovery of over $120m via liquidator of 4 Binetter family companies

In a long-running Wickenby related matter involving offshore tax evasion, the liquidator of 4 companies (the applicants) – acting on behalf of the Commissioner as the only creditor of the companies – has been successful in the Federal Court in arguing that certain directors of the companies (the respondents) breached their fiduciary duty in engaging…

Nudie clan’s $130m tax mistake: the split that doomed the Binetter family – tax lawyer: Michael should have learned Hebrew better (and not taken his sister in law)

Copy of article appearing in the Australian Financial Review on 30 November 2016, by by Neil Chenoweth. Deborah Huber (pictured below) is at the heart of this storey.]   Deborah Huber and Ronald Binetter: their evidence against the other Binetter family members was damning. Facebook If tax lawyer Michael Binetter has one regret, from his new home in…

Re McKinnon Holdings (NSW) Pty Ltd and FCT – Claim for input tax credits denied – no payment made for supply and no assumption of finance liabilities by the purchaser/taxpayer (after agreement, nothing done)

The AAT has confirmed that a taxpayer was not entitled to claim input tax credits of over $90,000 in relation to “acquisitions” from an associated entity. An associated entity of the taxpayer owned assets, most of which were subject to charges held by third party financiers. The taxpayer argued that under an agreement entered into with…

Australia’s Public Debt Problem and fiscal considerations

  This is a Paper by Tony Makin and Julian Pearce on the ‘Tax and Transfer Policy Institute‘ (TTPI) website. _______________________________________________________________________________________ Budgetary issues in Australia have dominated public policy discussion at the federal level since the 2008-10 Global Financial Crisis (GFC). Governments at both national and state level entered the GFC running budget surpluses, yet post-GFC Australia has…

FCT v Jayasinghe – Commissioner grated leave to appeal decision that the taxpayer’s income from the UN was exempt from tax as the ‘holder of an office’ under the Privileges and Immunities Act

The Commissioner has been granted special leave to appeal to the High Court against the Full Federal Court decision in FCT v Jayasinghe [2016] FCAFC 79. The Full Federal Court had by majority dismissed the Commissioner’s appeal from an AAT decision which had found that a taxpayer was exempt from his earnings as the “holder of…

MNWA Pty Ltd v DCT – Full Court dismisses appeal to have statutory demands set aside despite allegations of a global deal and written agreements providing security

In a majority decision, the Full Federal Court dismissed the appeal of 2 corporate taxpayers to have statutory demands set aside. The taxpayers carried on property development activities. One of the directors of the companies claimed he reached a “global deal” with the ATO to bring to an end debt recovery action against the companies…

TA 2016/12 – Trusts: contrived s97(1)(a) ‘proportionate approach’ avoidance – distributable ‘trust law’ net income limited to exclude the economic substance in what would otherwise be the beneficiary’s taxable ‘net income’

On Thur 17.11.2016, the ATO released Taxpayer Alert TA 2016/12, which deals with trust income reduction arrangements the ATO is reviewing. This Alert cautions against arrangements that minimise tax by creating artificial differences between the taxable net income and distributable income of closely held trusts. The ATO says the arrangements appear designed to exploit the…

PCG 2016/D17 – ATO compliance approach to exploration expenditure deductions under s8-1 or s40-730 – problem areas identified and role of systems and governance assurances to ATO

On Monday 14 Nov 2016, the ATO released a draft of its Practical Compliance Guideline PCG 2016/D17 dealing with the ATO’s compliance approach to exploration expenditure deductions. Draft Taxation Ruling TR 2015/D4 (Income tax: deductions for mining and petroleum expenditure) provides the ATO’s view in relation to the deductibility under s8-1 and s40-730(1) of the…