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

*Confidential and Commissioner of Taxation – No foreign tax offset for Irish ‘Pay Related Social Insurance’ – not a “substantially similar tax” [13]

The AAT has held that an amount of Pay Related Social Insurance (PRSI) deducted from a taxpayer’s Irish salary was not a “substantially similar tax” to Australian income tax for the purposes of Australia-Ireland double tax agreement (Irish Agreement) and he was therefore not entitled to a foreign income tax offset for that Insurance. The…

*Confidential v Commissioner of Taxation – beneficiaries of unit-holding trusts assessable on UT capital gain – small business CGT concessions relevant [12]

In a case involving CGT and trust issues, the AAT has held that the sale of a business was a CGT event A1 that happened in the 2007 income year [for the vendor unit trust and that beneficiaries of unit holding trusts. However, the Tribunal then adjourned the case] for consideration issues surrounding the maximum…

*Kocharyan v FCT – deductions denied for share in partnership losses from investment in a MIS forestry scheme – ‘scheme benefit’ [11]

The Federal Court has rejected a taxpayer’s appeal against an earlier AAT decision concerning amended assessments. Originally, the AAT (in Confidential and FCT [2014] AATA 32) affirmed objection decisions made by the Commissioner to deny a taxpayer deductions of close to id=”mce_marker”m concerning partnership losses in relation to his investment in a forestry managed investment…

*Seven Network Limited v FCT – Payments for Olympic Games broadcasting rights were not ‘royalties’ and no withholding were required [10]

The Federal Court has allowed a taxpayer’s appeal and held that payments it made to the IOC for broadcasting rights to the Olympic Games were not ‘royalties’ under the Australia-Switzerland DTA, and that it was not required to withhold amounts from the payments. Seven Network Limited (Seven) made a series of payments between March 2006 and August 2008 to…

*Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT – trustee ‘resettled’ land it owed to a ‘joint venture trust – CGT event E1 [9]

In a decision handed down on Wed 28.1.2015, the Full Federal Court unanimously dismissed the taxpayer’s appeal from the decision in Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v FCT [2014] FCA 1. In that case, the Federal Court held that the taxpayer had effected the disposal of land that it…

*Albrecht & Ors v FCT – Super surcharge and WA police officers – appeals partly allowed [8]

The Full Federal Court has partly allowed appeals by commissioned officers of the Western Australian police force against superannuation contributions tax assessments. The question in the appeals was whether the Commonwealth can validly impose a superannuation surcharge tax upon commissioned officers of the Western Australian police force. The Acts imposing the tax have already been…

*Edmonds J – tax “sacred cows” should be on the tax reform table [7]

In an address at the Australasian Tax Teachers Association Conference in Adelaide on 20 January 2015, Justice Richard Edmonds of the Federal Court gave a paper entitled “Structural Tax reform: What should be brought to the table?“. Edmonds J said the trade-off for Australia’s high tax-free threshold and the steep increase in rates after the tax-free threshold, is that…

*IGT’s review of valuation issues in tax law – Assistant Treasurer releases his report [6]

The Assistant Treasurer, Josh Frydenberg, on Mon 19.1.2015, released the Inspector-General of Taxation’s Review into the ATO’s administration of valuation matters. He said valuation requirements have been an area of ongoing concern for taxpayers. The Inspector-General has identified inherent difficulties associated with the nature and associated costs of valuations. Given these issues, the Inspector-General has made…

*‘Look-through’ investors in instalment warrants and instalment receipts will be treated as the owner of the asset: draft legislation released [5]

Treasury on Mon 19.1.2015, released for comment, an exposure draft of legislation, which proposes to amend the income tax law to provide look-through income tax treatment for instalment warrants and instalment receipts. Under the proposed changes, the investor in the instalment warrant or receipt will be treated as the owner of the asset of the…