Category Archives: Tax Month – August 2013

*Kelly v FCT – Full Court confirms assignment of partnership interest partly valid [26]

The Full Federal Court has unanimously dismissed the taxpayer’s appeal and the Commissioner’s cross appeal from the decision at first instance in Kelly v FCT [2012] FCA 423. At first instance, the Federal Court found that the assignment of partnership interests under a “Retirement Deed”, to a holding trust for the benefit of the partners’…

*August v FCT – profits on sale of commercial property assessable as ordinary income as profit making scheme [25]

The Full Federal Court has unanimously dismissed an appeal by husband and wife taxpayers and beneficiaries from the decision in August v FCT [2012] FCA 682 in which it was held that gains made on the sale of shopping centres and properties held by trusts where made on a revenue account and not a capital…

Pratt Holdings Proprietary Limited v FCT (No 2) – Full Court dismisses further grounds re no deduction for mining losses and penalties [24]

Following the decision of the Full Federal Court in Pratt Holdings Proprietary Limited v FCT [2013] FCAFC 82 (see above), the Court has now addressed a range of further issues left until after the determination of the primary tax issue: including that the trial judge erred in law in finding that the taxpayer or its…

*Pratt Holdings Proprietary Limited v FCT – No deduction for transfer of losses under mining provisions – taxpayer loses appeal [23]

In a decision handed down on Fri 2.8.2013, the Full Federal Court dismissed an appeal by a taxpayer against an earlier decision which had held that the taxpayer was not entitled to deduct a loss transferred to it from a related joint venture company in respect of a project to explore certain mining exploration tenements.…

Gashi v FCT asset betterment assessments stand [22]

The High Court has refused the taxpayers special leave to appeal from the decision of the Full Federal Court in Gashi v FCT [2013] FCAFC 30. In that case, the Full Federal Court found that an asset betterment assessment issued to husband and wife taxpayers should stand. It found that the taxpayers did not discharge…

*Bell v FCT stands – family trust failed the $5m test for small business relief (in part due to a mortgage interest offset account) [21]

The High Court has refused the taxpayer special leave to appeal from the decision of the Full Federal Court in Bell v FCT [2013] FCAFC 32. In that case, the Full Federal Court confirmed that a family trust failed the maximum net asset value test for the purposes of accessing the CGT small business concession…

*ACE Insurance Limited v Trifunovski & Ors stands – civil penalty for not treating insurance agents employees for SGC purposes [20]

The High court has refused the taxpayer special leave to appeal from the decision of the Full Federal Court in ACE Insurance Limited v Trifunovski & Ors [2013] FCAFC 3. The Full Federal Court has dismissed an appeal by a company against a decision of the Federal Court in ACE Insurance Limited v Trifunovski (No…

*FCT v Macquarie Bank Limited (Mongoose case) stands – consolidated company could not have a Part IVA ‘tax benefit’ on shares sold [19]

The High Court has refused the Commissioner special leave to appeal from the decision of the Full Federal Court in FCT v Macquarie Bank Limited [2013] FCAFC 13. The Full Federal Court had unanimously dismissed the Commissioner’s appeal and held that a member of a consolidated group was not subject to Pt IVA in respect…

*Fortescue Metals Group Limited and Ors v The Commonwealth of Australia – High Court dismisses challenge to constitutional validity of the mining tax [18]

The High Court on Wed 7.8.2013 unanimously dismissed proceedings brought by Fortescue Metals Group Limited (“Fortescue”) challenging the constitutional validity of some provisions of the Minerals Resource Rent Tax Act 2012 and other related “imposition” Acts, which created and imposed a minerals resource rent tax (MRRT) with effect from 1 July 2012. The other related imposition Acts…

Incorporation of barristers’ practices: no tax advantage, says senior counsel [17]

The NSW Bar Association will hold a General Meeting on 17 September 2013 in which a motion will be moved expressing support for changes that would permit barristers, who choose to do so, to practise through single member, sole director companies. To assist members with voting on this motion, the Bar Council has released advice from 4…