Category Archives: Tax Month – April 2012

*ANZ v Konza – Taxpayer appeals the decision that a s264 notice was effective to get details of their Vanuatu customers from an Australian computer [C14]

The taxpayer has appealed to the Full Federal Court against the decision of Lander J in Australia and New Zealand Banking Group Limited v Konza & Anor [2012] FCA 196. The Federal Court had held that notices issued by the ATO under s 264 of the ITAA 1936 to the Australia and New Zealand Banking…

Kocic v DCT – High Court refuses taxpayer leave to appeal against Directors Penalty Notice liabilities [C13]

The High Court has refused the taxpayer special leave to appeal against the NSW Court of Appeal decision in Kocic v DCT[2011] NSWCA 322. The NSW Court of Appeal had dismissed the taxpayer’s appeal against an earlier decision of the NSW District Court which had affirmed 2 directors’ penalty notices (DPNs) issued to him in…

*Legal Services Commissioner (Vic) v Stirling – Barrister’s practising certificate suspended for 3 years for tax offences stretching over 10 years [C12]

The Victorian Civil and Administrative Tribunal has handed down a 3-year suspension of a barrister’s practising certificate following a finding that he was guilty of professional misconduct within the meaning of s 4.4.3(1)(b) of the Legal Profession Act2004 (Vic) for engaging in conduct that justified a finding that he was not a fit and proper…

*Re Mehta and FCT – Taxpayer held to be a share trader and he should be allowed deductions for losses [C11]

The AAT has held that a taxpayer was a share trader for the year ended 30 June 2009. The taxpayer sold an investment property in 2005 and decided to operate as a trader in shares. To this end, he reduced his hours of work in his primary occupation from 70 to 80 hours a week…

*Re Phillips and FCT – CGT: Maximum net asset value test failed – liability not related to assets of the same entity [C10]

The AAT has held that a taxpayer had not passed the maximum net asset value test for the purposes of the CGT small business concessions in respect of a capital gain of $3.4m made on selling shares to his family trust. This was because a liability incurred, in respect of a related loan of $1.4m…

*New appointments to the AAT with Tax Expertise – including Fiona Alpins in Melbourne [C9]

Federal Attorney-General Nicola Roxon Thur 19.4.2012, announced 7 new part-time appointments to the Administrative Appeals Tribunal. They include: Ms Fiona Alpins, Professor Robert Deutsch and Mr Stephen Frost have been appointed as Deputy Presidents with taxation expertise. Ms Gina Lazanas has been appointed as a Senior Member with taxation expertise. Source: Attorney-General’s media release, 19…

Kelly v FCT – Partner partly unsuccessful in claiming assignment of partnership interest [C8]

A taxpayer, a partner in a partnership of 7 solicitors, has been unsuccessful in arguing that a retiring partner had equitably assigned 20% of his interest in the partnership to a “partnership trust” and that therefore he (and the other partners) was only assessable on something less than 1/7th of the partnership profits in the…

*Sent v FCT – Managing director assessable on accrued bonus amounts [C7]

The Federal Court has held that bonuses paid to a managing director of a company were assessable as ordinary income. The taxpayer was the managing director and CEO of a company. His employment contract provided for cash bonuses to be paid that fell into 3 categories: (i) those that had accrued and were payable; (ii)…

*Binetter v DCT – Court orders gives taxpayer interim relief from compliance with a s264 notice to allow trial on clarity of one question [C6]

The Federal Court has ordered that the Commissioner extend the time for a taxpayer to comply with a s 264 notice. The assessments in question related to the Commissioner’s treatment as income of deposits in the taxpayer’s bank account. Assessments were issued and the taxpayer objected. The taxpayer argued that the deposits were partly of…

*DCT v Bayconnection Property Developments Pty Limited – ATO winding up application (for BAS liabilities) was deferred to allow the result of a Part IVC appeal to be known [C5]

The Federal Court has deferred a winding up application until the taxpayer could have its case on objection decisions decided before the AAT. A Deputy Commissioner of Taxation filed on 4 November 2011 an application under s 459P of the Corporations Act 2001 for the winding up of the taxpayer company on the ground of…