Commissioner of Taxation v BHP Billiton Limited – BHP entities held to be ‘associates’ of Billiton (UK) entities, under their ‘dual-listed’ structure – for CFC purposes

On 29.1.19, the Full Federal Court allowed the Commissioner’s appeal and found that BHP on the issue of whether it’s ‘dual-listed’ arrangements, with the UK Billiton company, made BHP subsidiaries, ‘associates’ of the Billiton entities, for Controlled Foreign Corporations (CFC) purposes. At issue was whether BHP had to return (under the CFC provisions) its share…

Tax Month - January to April 2019

University ‘Tax Clinics’ – Labor would fund Melbourne Uni’s clinic, allow them to register as tax agents and to get DGR status

On 15.4.19, Shadow Assistant Treasurer: Mr Andrew Leigh announced that a Labor government would provide the University of Melbourne’s ‘Tax Clinic’ $150,000 annually as part their policy to have 10 tax clinics around Australia, facilitate their registration as a tax agent and also give them Deductible Gift Recipient status. See below for the entire media…

Tax Month - January to April 2019

Glencore’s case in the High Court, seeking orders that the ATO return and not use ‘privileged’ documents stolen the Paradise Papers leak – decision reserved after hearing

On 17.4.19, the High Court heard the case brought by Glencore International seeking orders that the ATO deliver up documents it had obtained, relating to Glencore, following the 2017 leak of the so called ‘Paradise Papers’ (see related Tax Technical article). They also sought an injunction restraining the ATO from using those documents. The High…

Tax Month - January to April 2019

Frugtneit v ASIC – AAT improperly considered ‘spent’ offences, when reviewing ASIC’s banning order (standing in ASIC’s shoes)

On 15 May 2019, the High Court held that the AAT was NOT entitled, when reviewing an ASIC decision, to take into account, ‘spent’ crimes, that ASIC was prevented from considering, in the decision that the AAT was reviewing. This case confirms a well understood basis, on which the AAT operates, including in tax appeals.…

Tax Month - May 2019

Rudy Noel Frugtniet – Would-be lawyer, tax agent, and migration agent runs into trouble (”carries with him a massive bag of dishonest conduct”)

Rudy Noel Frugtniet – Would-be lawyer carries ‘bag of dishonest conduct’ The Age newspaper – article by Selma Milovanovic; April 23, 2011 — 12.00am This article appears to provide background on the Rudyt Noel Frugtneit, the subject of other cases reported other Tax Technical articles, including: Proceedings to terminate Frugtniet’s registration as a tax agent; and A High…

Tax Articles

Resource Capital Fund IV LP applied to High Court for leave to appeal against the Full Federal Court decision finding it liable for tax on profits made on shares in an Australian company with an Australian mine and processing plant

The taxpayer has applied for special leave to appeal to the High Court from the decision of the Full Federal Court in FCT v Resource Capital Fund IV LP [2019] FCAFC 51. In that case, the Full Federal Court upheld the Commissioner’s appeal in relation to the tax treatment of profits made by two US…

Tax Month - May 2019

Chartered Accountants’ submission to the Independent Review of Tax Practitioners Board and TASA (includes TPB independence from ATO)

On 8 May 2019, Chartered Accountants Australia and New Zealand (CA) made a preliminary submission to the Independent Review of the Tax Practitioners Board (TPB) and the Tax Agents Services Act 2009 (TASA). It sets out a list of 14 things that are NOT working, in Appendix 1. This includes the ‘Interaction between Tax Agent…

Tax Month - May 2019

Tax Institute’s submission to the Review of the TPB & TASA – suggesting matters to go into their ‘Discussion Paper’ (interface with legal regulation mentioned)

On 18 April 2019, The Tax Institute (Institute) made a submission to the Independent Review of the Tax Practices Board (Board) and its enabling legislation: Tax Agents Services Act 2009 (TASA). See this related Tax Technical article, covering this review. I made a submission to this review, as did the Law Council of Australia and…

Tax Month - January to April 2019