Category Archives: Tax Month – April 2013

Re IOOF Holdings Limited and FCT – Taxpayer fails in second preliminary matter regarding a ruling rights to future income in a consolidated group [18]

The AAT has held that, for the purposes of undertaking its review of the Commissioner’s deemed disallowance of the taxpayer’s objection against the Commissioner’s failure to make a private ruling concerning its claim for a deduction under s 716-405 of the ITAA 1997 re rights to future income, it was not open to the Tribunal to…

Re The Gambler and FCT – Unexplained deposits not attributable to gambling winnings [19]

The AAT has affirmed amended assessments and penalties imposed on a taxpayer that were based on the Commissioner’s assessment of numerous unexplained deposits to several of the taxpayer’s bank accounts. The taxpayer claimed that he and a friend travelled to Vietnam in 2006 and discovered a system for winning at baccarat that meant he could…

Re The Trustee for Oenoviva (Australia and New Zealand) Plant and Equipment Trust & Anor v FCT – No ATO reviewable objection decision, no jurisdiction [20]

The AAT has held that it does not have the jurisdiction to consider applications lodged on behalf of taxpayer trusts relating to assessments of GST and associated penalties on the basis that the Commissioner had not yet made a reviewable objection decision. The taxpayers were 2 associated trusts that had been audited by the ATO…

Re Altnot Pty Ltd and FCT – small business CGT relief – despite winning in the AAT, the Commissioner appeals the basis of the finding on minimum net value [21]

The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 140, Re Altnot Pty Ltd and FCT. In that case, the AAT confirmed a taxpayer company did not satisfy the maximum net asset value (MNAV) test for the purposes of qualifying for the CGT small…

Re Walters and FCT – Commissioner appeals AAT decision that it can review objections made prior to the amended assessments [22]

The Commissioner has lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 151, Re Walters and FCT. In that case, the AAT determined that it had the jurisdiction to review objection decisions made by the Commissioner in relation to both amended assessments of primary tax and assessments…

FCT v Macquarie Bank Limited – Commissioner seeks special leave to appeal to the High Court from ‘Mongoose’ Part IVA consolidation decision [23]

The Commissioner has applied for special leave to appeal to the High Court against the decision of the Full Federal Court in FCT v Macquarie Bank Limited [2013] FCAFC 13. In that case, the Full Federal Court unanimously dismissed the Commissioner’s appeal and held that a member of a consolidated group was not subject to…

VN Railway Pty Ltd & Anor – taxpayer appeals decision to impose 75% penalty for intentional disregard of the law [24]

The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Tracey J in VN Railway Pty Ltd & Anor v FCT [2013] FCA 265. In that case, the Federal Court upheld a 75% tax shortfall penalty imposed on the trustee of a family trust operating independent supermarkets after ruling…

*Southgate Investment Funds Limited v DCT – Broadbeach Properties did not prevent a stay of execution on a grant of summary judgment [25]

The ATO Tue 9.4.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in Southgate Investment Funds Limited v DCT [2013] FCAFC 10. In that case, the Full Court unanimously allowed a company taxpayer’s appeal from an earlier court decision denying the taxpayer a stay of execution (in relation to a grant of…

ATO View on Binetter v DCT – s264 notice valid and did over-ride the privilege against self-incrimination, notwithstanding foreseeable Part IVC proceedings [26]

The ATO on Thursday 11.4.2013, issued a Decision Impact Statement on the Full Federal Court’s decision in [2012] FCAFC 126 and the subsequent special leave application by the taxpayer to the High Court. The Full Federal Court had dismissed the taxpayer’s appeal from part of the judgment in Binetter v DCT (No 3) [2012] FCA…

TD 2013/D2 – Earnings for Defense Force personnel whilst on leave from active duty overseas, through accident or illness, remain exempt under s23AG [27]

This Draft TD, issued Wed 24.4.2013, states that foreign earnings derived by Australian Defence Force (ADF) members from a period of leave as a result of an accident or illness that occurred while deployed overseas by the ADF as a member of a disciplined force are exempt under section 23AG of the ITAA 1936. The Draft says…