Category Archives: Tax Month – April 2016

Fischer & Ors v Nemeske Pty Ltd & Ors – distribution of capital from asset revaluation reserve was a valid exercise of the trustee’s discretion and recoverable, including in law as a ‘debt’

On 6 April 2016, the High Court, by majority, dismissed an appeal from the Court of Appeal of the Supreme Court of New South Wales. The High Court held that a trustee had validly exercised a power to “advance” and “apply” trust capital or income by creating a debt reflecting the value of shares held by…

SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd – NSW Supreme Court ‘rectifies’ contract to make the price ‘plus GST’ despite contract saying it was ‘inclusive of GST’

In SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2016] NSWSC 362 the Supreme Court found that a Contract of Sale should be rectified to reflect the common intention of the parties that the purchase price was to be exclusive of GST. The decision is another example of the difficulties that can arise where real estate is…

NSW land tax: Metricon Qld Pty Limited v Chief Comr of State Revenue (No 2) – exempt because the dominant [current] use was primary production, despite ultimate use would be property development

A taxpayer has been successful before the Supreme Court of NSW in having land tax assessments for the 5 land tax years set aside on the basis that the primary production use of the lands in question was “the dominant use” of the lands, except for one parcel in one land tax year. The taxpayer…

DCT v Rablin; DCT v Shaw – summary judgment given for directors’ penalties of $1.7m

The Qld Supreme Court has granted a Deputy Commissioner’s application for summary judgment for directors’ penalties totalling almost $1.7m against 2 directors of a company. The amounts claimed by the Deputy Commissioner were for penalties imposed on the directors in respect of amounts withheld by the company in respect of PAYG tax from payments made…

The ‘Panamanian law firm’ leaks – ATO confirms it has received a large number of documents, identifying over 800 individual taxpayers, who they are now investigating

On Monday 4 April 2016, the ATO released a statement confirming that it has ‘recently’ received a ‘data’ in relation to a a ‘Panamanian law firm’ which has come from ‘a release of data by transparency or media organisations in Australia and overseas’. They do not identify the actual ‘organisations’ who released this data or what it…

New DTA between Australia and Germany (signed 12 November 2015) – draft legislation to enact it into domestic law released for comment

On 1 April 2016 Treasury released an exposure draft of the legislation that would give legislative effect to the new double tax agreement (DTA) between Germany and Australia, which they signed on 12 November 2015. This treaty replaces a previous double taxation agreement between Australia and Germany signed in 1972. The new provisions/amendments include measures…

Intangible asset depreciation: draft legislation released to implement ‘Innovation’ statement – self-assess ‘effective life’ etc.

On 7 December 2015, the Government announced a package of measures designed to incentivise and reward innovation as part of its National Innovation and Science Agenda. One of those measures will allow taxpayers the choice to either self‑assess the effective life of certain intangible depreciating assets or use the statutory effective life. The current law only provides…

Tax Month – April 2016

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – April 2016 Developments – This is a collection of developments in Australian tax law and practice that occurred in March 2016 which aims to be relevant to tax practitioners.[i] Compiled By F John…