Author Archives: John Morgan

FCT v AP Energy Investments Pty Ltd – a Chinese company was not liable for CGT on sale of shares in Australian mining company because of the first instance Tribunal decision as to the value of ‘mining information’

On Wednesday 25.5.2016, the Federal Court dismissed the Commissioner’s appeal from the decision in AAT Case [2013] AATA 626, Re AP Energy Investments Limited and FCT, effectively holding that the taxpayer company (a Chinese company) was not liable for CGT on sale of shares it held in an Australian mining company. The AAT had ruled that…

FCT v Seven Network Limited – Payments to the IOC for the broadcasting rights to the Olympics (i.e. for the ‘use’ their ITVR Signal) not royalties within the Double Tax Treaty and required no withholding – Commissioner loses appeal

The Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision of Bennett J in Seven Network Limited v FCT [2014] FCA 1411, effectively holding that payments made by Seven Network Limited [Seven] to the IOC for broadcasting rights to the Olympic Games were not royalties under Article 12(3) of the Australia-Switzerland DTA, and that it was…

CR 2016/31-33 – FBT car log book; FBT entertainment; off market take over

On Wednesday 25.5.2015, the ATO issued the following Class Rulings: CR 2016/31: FBT: employers who use the mTrax GPS system for car log book records and for odometer records. It applies from 29 February 2016. CR 2016/32: FBT: employer clients of Australia and New Zealand Banking Group Limited (ANZ) who are subject to the provisions of s 57A of…

TR 2016/2 – TOFA – swaps – to be covered under accrual/realisation rules they must meet the definition in s230-120(1) of the ITAA97

On Wednesday 25.5.2016, the ATO issued Taxation Ruling TR 2016/2 which sets out the Commissioner’s views on the operation of s230-120 of the Income Tax Assessment Act 1997. Section 230-120 modifies the manner in which the accrual/realisation provisions in Subdiv 230-B of the TOFA rules apply to certain “notional principal” arrangements like swaps. The Ruling notes that…

NSW land tax: Theophilas v Chief Comr of State Revenue – Principal Place of Residence (PPR) concession not available as taxpayer moved to another house he ‘owned’ whilst his was rebuilt

On Monday Mon 23.5.2016, the Appeal Panel of the NSW Civil and Administrative Tribunal dismissed a taxpayer’s appeal against an earlier decision which had denied him the concession for unoccupied land intended to be the owner’s principal place of residence (PPR) (contained in clause 6 of Sch 1A of the Land Tax Management Act 1956 (NSW)). The taxpayer…

Vic stamp duty: Michaelides & Anor v Com of State Revenue – alteration in the trust/trust property – exemption denied – taxpayers lose appeal

Two taxpayers have been unsuccessful before the Victorian Supreme Court in seeking an exemption from duty in respect of a transfer of property under s33(3) of the Duties Act 2000 (Vic). The taxpayers developed 2 townhouses through a partnership and their family trust. When the development was completed the land was transferred to them. The Commissioner assessed…

ATO timetable for reporting of non-resident accounts (under ‘CRS’ & FATCA’) – starting 1 July 2017 and applying to all foreign accounts in the 2018 calendar year

The ATO set out its timetable for implementation of banks and other financial institutions reporting accounts, held by non-residents, under the common reporting standard or ‘CRS‘ (implemented in Australia under the Tax Laws Amendment (Implementation of the Common Reporting Standard) Act 2016). There is an equivalent obligation to report accounts held by residents of the USA under…

Annual tax returns for the 2016 financial year – Commissioner registers ‘legislative instruments’ creating the requirement to lodge

The requirement to lodge annual returns is created, under the relevant provisions, by the Commissioner making a Legislative Instrument No. 1 and he registered that instrument on Thursday 19.5.2016 for the 2016 tax year. The provisions cited as relevant are set out in the extract from the legislative instrument below. The instrument establishes due dates for lodgment…

DCT v Holton – Court upholds the liability of director for $264,000 the amount his company withheld from wages and had not remitted to the ATO

The County Court of Victoria has granted judgment to the ATO for a Directors’ Penalty Notice after finding that the director had not established adequate defences against the ATO claim. The penalties related to PAYG amounts withheld but not remitted to the ATO by the company in question. The director did not dispute the debt…

ACN 005 057 349 Pty Ltd v Comr of State Revenue – recovery of double assessed of land tax

The Commissioner of State Revenue (Vic) has applied for special leave to appeal to the High Court against the decision in ACN 005 057 349 Pty Ltd v Comr of State Revenue [2015] VSCA 332. The Victorian Court of Appeal had held that overpaid land tax could be recovered by the taxpayer by a proceeding for mandamus. [LTN 94,…