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

Hii v FCT – Failure to consider ‘fraud or evasion’ issue not s39B invalid – Notice of Assessment conclusive except in Part IVC proceedings [18]

Tax Month - April 2015

The Federal Court has dismissed a taxpayer’s application seeking orders that second amended assessments issued to him were invalid. These assessments were issued following the taxpayer being partially successful in his objection to the original amended assessments. In seeking the orders that the second amended assessments were invalid, the taxpayer argued that while the original…

*Donoghue v FCT – recovery proceedings dismissed – underlying assessments invalid because of intentional use of material protected by LPP [17]

Tax Month - April 2015

The Federal Court has dismissed tax recovery proceedings against a taxpayer following earlier quashing assessments issued to him. Proceedings for the recovery of a taxation liability, grounded in the quashed assessments and related general interest charge (GIC), were originally instituted by a Deputy Commissioner of Taxation against the taxpayer in the Supreme Court of Queensland.…

*Donoghue v FCT – recovery proceedings dismissed – underlying assessments invalid because of intentional use of material protected by LPP [17]

Tax Month - April 2015

The Federal Court has dismissed tax recovery proceedings against a taxpayer following earlier quashing assessments issued to him. Proceedings for the recovery of a taxation liability, grounded in the quashed assessments and related general interest charge (GIC), were originally instituted by a Deputy Commissioner of Taxation against the taxpayer in the Supreme Court of Queensland.…

Bond v FCT – Pilot’s insurance proceeds on losing his license for medical reasons was an ETP and not capital for personal injury under s82-135 [15]

Tax Month - April 2015

The Federal Court has held that a lump sum payment made to an airline pilot who lost his pilot’s license for medical reasons was assessable as an eligible termination payment (ETP). Facts – The taxpayer was employed as an airline pilot. Following the cancellation of his pilot’s licence for medical reasons the taxpayer received a…

*FCT v Australian Building Systems Pty Ltd (in liq) & Anor – special leave to appeal – liquidator does not have to retain funds for tax on disposal [14]

Tax Month - April 2015

The High Court heard (on 17.4.15), the Commissioner’s applications for special leave to appeal against the decision of 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 to retain monies from…

*Queensland Nickel Pty Ltd v The Commonwealth of Australia – issue of free ‘carbon units’ did not give preference to one state and therefore valid [13]

Tax Month - April 2015

On Wed 8.4.2015, the High Court unanimously upheld the validity of provisions of the Clean Energy Regulations 2011 (Cth) that provided for the free issue of carbon “units” to entities engaged in the production of nickel. The Clean Energy Act 2011 (Cth), Clean Energy (Charges – Excise) Act 2011 (Cth), Clean Energy (Charges – Customs)…

Justice Gordon appointed to the High Court [12]

Tax Month - April 2015

The Attorney-General has announced that the Governor-General has accepted the advice of the Government to appoint the Honourable Michelle Marjorie Gordon, a Judge of the Federal Court of Australia, as the next Justice of the High Court of Australia. Justice Gordon will replace the Honourable Justice Kenneth Hayne AC, who will reach the statutory retirement on 5 June 2015. Justice Gordon will…