Re Bhatti and FCT – Accountant’s work-related expenses largely disallowed

Tax Month 2016-01

A senior accountant has been largely unsuccessful before the AAT in claiming deductions for work-related expenses, including home office, self-education and travel expenses in her 2012 and 2013 tax returns. The Commissioner disallowed various deductions and imposed an administrative penalty for failure to take reasonable care. The Commissioner partly allowed the taxpayer’s objection and, after…

Tech Mahindra Limited v FCT – taxpayer with P/E in Australia appeals decision that it is taxable on some of its services provided from India

Tax Month 2016-01

The taxpayer has appealed to the Full Federal Court against the decision in Tech Mahindra Limited v FCT [2015] FCA 1082. In the case, the Federal Court held that a company resident in India and registered in Australia, and which carried out IT services for Australian clients both from its permanent establishment (PE) in Australia…

Blank v FCT – taxpayer seeks leave to appeal to High Court – USD160m paid under ‘profit participation scheme’ held to be ordinary income

Tax Month 2016-01

The taxpayer has applied for special leave to appeal to the High Court against the decision in Blank v FCT [2015] FCAFC 154. In a majority decision, the Full Federal Court dismissed the taxpayer’s appeal and confirmed that payments of US$160m he received in instalments following his termination from a company was assessable to him as…

PFGG v FCT – taxpayer appeals decision that it was not entitled to ‘small business CGT relief’ because it was not a ‘small business entity’

Tax Month 2016-01

The taxpayer has appealed to the Federal Court against the decision in Re PFGG and FCT [2015] AATA 972. In that decision, the AAT confirmed that the taxpayer involved in the mining industry which made a capital gain of $5.4m from the sale of Western Australia mining tenements was not eligible for the CGT small…

Australian Building Systems Pty Ltd (In Liquidation) case – no s254(1)(d) retention obligation and no preference for Commissioner

Tax Month 2016-01

In the cases of Commissioner of Taxation v. Australian Building Systems Pty Ltd (In Liquidation) and Commissioner of Taxation v. Ginette Dawn Muller and Joanne Emily Dunn as Liquidators of Australian Building Systems Pty Ltd [2015] HCA 48, the High Court held (3-2 on 10 Dec 2015) that s254(1)(d), of the ITAA 36, did not…

TR 2014/D1 on tax consequences of Employee Share Schemes operating outside the statutory regime – ‘Discussion Paper’ for further draft ruling

Tax Month 2016-01

The Commissioner has issued a ‘Discussion Paper’ to assist in drawing a second draft of TR 2014/D1 Income tax: employee remuneration trusts was published on 5 March 2014. Comments are sought be 12 February 2016. This draft sought to explain, in a preliminary way, the Commissioner’s views on the taxation consequences for employers, trustees and…

CR 2016/6 – Swinburne University Academic Staff Voluntary Early Retirement Scheme 2015-16 is a s83-180 early retirement scheme

Tax Month 2016-01

On Wed 27.1.2016, the ATO issued Class Ruling CR 2016/6 (the Swinburne University Academic Staff Voluntary Early Retirement Scheme 2015-16). The Class Ruling provides that the Swinburne University Academic Staff Voluntary Early Retirement Scheme 2015-16 is an early retirement scheme for the purposes of s 83-180 of the ITAA 1997. It applies from Wed 27.1.2016 to…