Category Archives: Tax Month – April 2022

Belconnen Lakeview Pty Ltd v Lloyd – GST status disclosed in Sale of Land – High Court refuses developer’s application for leave to appeal

The High Court has refused special leave to appeal from the decision of the Full Federal Court in Belconnen Lakeview Pty Ltd v Lloyd [2021] FCAFC 187. In that case, a Canberra developer had incorrectly claimed that the sale of a unit in the ACT was subject to GST, and faced a consumer law action…

NSW payroll tax: Bonner v Chief Commissioner of State Revenue – model agencies liable – extent of ‘gloss’ on NSW provisions in issue but not ultimately determined

Modelling agencies were taken to be employers of models and thus liable for payroll tax. The taxpayers (each for a separate period of time) operated a business, acting as agents for persons seeking work as models in advertising and promotional material. The business also involved entering into contracts with clients to supply the services of…

NSW land tax: Godolphin Australia Pty Ltd v Chief Commissioner of State Revenue – thoroughbred horse properties exempt from land tax as ‘used for primary production’ despite emphasis on training for race wins

On 13.4.22, the NSW Supreme Court held that Godolphin was entitled to exemption from land tax, on 2 of its properties in the Hunter Valley as ‘land used for primary production’ under s10AA(3)(b) of the Land Tax Management Act 1956 (NSW). The Court held that the dominant use of the properties was for the maintenance…

PwC loses LPP stoush with Commissioner of Taxation – multi-disciplinary practices exposed

Federal Court judge: Justice Moshinsky found against PwC in a landmark case regarding the extent to which documents generated, whilst acting for the Brazilian multi-national meat processor: JBS, were actually subject to ‘legal professional privilege’ (LPP) – PwC v CofT [2022] FCA 278. His Honour handed down is decision, on on 25 March 2022, in…

Trustees of the Collins Retirement Fund v CofT – GST payable on sale of subdivided lots because ‘turnover’ included the sales proceeds

The AAT has held that an SMSF, that sold subdivided residential lots, was subject to GST on their sale, despite not being registered for GST. This was on the basis that it was ‘required to be registered’, which, in turn, depended on whether their sales proceeds could be excluded from the relevant turnover calculations. This…

CofT v Carter – High Court rules that ‘disclaimers’ of trust interests do not operate ‘retrospectively’ for tax purposes (arguably quite unfair)

The High Court held (on 6.4.22) that a beneficiary, who disclaimed their ‘default’ right to a trust’s income (on becoming aware of it) did not succeed in avoiding tax on the income they were entitled to and the end of the relevant year. ‘Disclaimer’ might ‘undo’ an equitable right, created unilaterally, but for equitable rights,…

Federal Budget 2022–23 – ‘patent box’ extensions, 120% training and technologies deductions, ‘cost of living tax offset’ confusion

On Tuesday 29.3.22, the Federal Treasurer, the Hon Josh Frydenberg MP, handed down the Federal Budget 2022–23. The Government introduced a package of three Bills the next day and they were passed, by both houses, that same day (30.3.22) – see related TT article and Budget Paper No.2 (Receipts/Treasury). Many of the tax-related announcements were easy…

Tax Month – April 2022

T a x  T e c h n i c a l  –  M o n t h l y  N e w s – April 2022 Edition – ‘Tax Developments’ for tax practitioners by a tax practitioner.   Compiled by F John Morgan A member of the Victorian Bar (www.FJMtax.com) Table of Contents ______________________________________________________________________________  …