Millar v FCT – Back to Back loan from Aust’n Super Fund to Hua Wang Bank (Vanda Gould) to the taxpayers was treated as a ‘sham’ and taxed as premature payment of preserved benefits

On Monday 4.7.2016, the Full Federal Court, by majority, dismissed husband and wife taxpayers’ appeal from the October 2015 decision of Griffiths J in Millar v FCT [2015] FCA 1104 in a case concerning a property loan arrangement with a Samoan bank being a sham. The original AAT proceeding (Re Morrison and FCT [2015] AATA 114) was a review of a…

Re H J International Trade Group Pty Ltd and FCT – milk bar and student home stay taxpayers assessed on under-reported income tax and GST based on records and industry averages together with penalties

The AAT has affirmed the Commissioner’s income tax and associated penalty decisions imposed on a taxpayer. However, it also decided to vary the GST and associated penalty decisions to reflect a reduced GST liability as conceded by the Commissioner before the hearing. The taxpayer operated a milk bar and contended it also operated a homestay…

Shord v FCT – taxpayer held to be a ‘resident’ and taxable on foreign source income without qualifying for s23AG exemption or foreign tax offsets

A taxpayer has been unsuccessful before the Federal Court in appealing against the decision in Re Shord and FCT [2015] AATA 355. In that case, the AAT had affirmed the Commissioner’s objection decisions and found: that the taxpayer was a resident of Australia for the 2006 to 2011 income years, despite the taxpayer’s claim that he…

TD 2016/13 – Reasonable travel and meal allowance amounts for 2016-17

On Friday 1.7.2016, the Commissioner issued TD 2016/13 setting out 2016/17 reasonable amounts for the following: overtime meal allowance expenses: $29.40; domestic travel allowance expenses: accommodation at daily rates (for domestic travel only); meals (showing breakfast, lunch and dinner); and deductible expenses incidental to travel. travel allowance expenses for employee truck drivers: for food and drink…

NSW payroll tax: Eastside Veterinary Emergency & Specialists Pty Ltd v Chief Comr of State Revenue – degrouping discretion denied

On Thursday 26.5.2016, the NSW Civil and Administrative Tribunal affirmed the Commissioner’s decision not to de-group the taxpayer under s79 of the Payroll Tax Act 2007 (NSW). The taxpayer accepted it was properly grouped with 2 other entities for the period from 19 December 2011 to 31 August 2014. However, the taxpayer argued that it carried on different and independent businesses…

Tax (financial) advisers’ code of professional conduct – draft TPB Information Sheets on Code of Professional Conduct obligations: conflicts of interest; know your client; best interests of client; etc.

The Tax Practitioners Board has issued the following Draft Information Sheets: Having adequate arrangements for managing conflicts of interest for tax (financial) advisers – Exposure draft of TPB Information Sheet on Item 5 of the Code of Professional Conduct: TPB(i) D35/2016. Code Item 5 requires registered tax (financial) advisers (and tax and BAS agents) to have adequate arrangements…

LCG 2016/1 – GST: new law for supplies into Australia, including a new test for carrying on enterprise in Australia

On Thursday 26.5.2016, the ATO issued Law Companion Guideline LCG 2016/1 (GST and carrying on an enterprise in the indirect tax zone (Australia)). It discusses: a test in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016 (“the Amending Act”) for when an enterprise of an entity is carried on in the indirect tax zone (Australia);…