The Supreme Court of WA has held that 2 brothers, who conducted an accounting practice and other businesses, were not in partnership. The 2 brothers had spent some 30 years in business together including an accounting practice, property development, share dealing, corporate consulting and farming. Over that time, they had used various structures such as…
The AAT has affirmed objection decisions made by the Commissioner in relation to amended assessments issued to the taxpayer for the 2006 and 2007 income years to deny deductions of $518,000 and $416,000, respectively, concerning partnership losses in respect of a taxpayer’s investment in a Managed Investment Scheme (MIS), Great Southern Plantations 2005 Project, for…
The AAT has affirmed the Commissioner’s decision to deny various work-related expenses that a taxpayer claimed for the 2008 income tax year as it found he had not discharged the onus of proof. It also affirmed the 25% administrative penalty imposed. The taxpayer was a senior pilot employed by Regional Express Holdings. During the relevant…
A taxpayer has been mostly unsuccessful before the AAT in challenging the Commissioner’s decision to disallow a variety of deductions relating to rental properties. The taxpayer, who worked full-time as an industrial chemist, owned rental properties with her husband and had done so for many years. In the income years in question (2003, 2004 and…
The AAT has affirmed an administrative penalty imposed on a property development company for failing to take reasonable care by not including the proceeds from the sale of an apartment in the relevant BAS. In July 2010, the taxpayer entered into an “off the plan” contract to sell an apartment for about $3.095m. In early December 2011, the purchaser…
The AAT has allowed a truck driver’s claims for unsubstantiated food and drink expenses that were claimed on the basis of the Commissioner’s daily rates. The taxpayer is a full-time employee truck driver. In the year ended 30 June 2011, he claimed deductions for the cost of food and drink consumed by him at roadhouses and service…
The AAT has affirmed the Commissioner’s decision that The Study and Prevention of Psychological Diseases Foundation Incorporated had not met the requirements for endorsement as an income tax exempt charity under Subdiv 50-B of the ITAA 1997. The Foundation was incorporated in 2005 and had previously been granted tax-exempt status under s 50-110, was endorsed as…
The AAT has affirmed amended assessments issued by the Commissioner to husband and wife taxpayers outside the 4-year amendment period as it determined there had been fraud or evasion. The taxpayers conducted a number of businesses including a tobacco supply and snack bar business in a partnership. The AAT said they reported “modest income” from…
The AAT has allowed husband and wife taxpayers’ appeals and held that the husband alone was the person who controlled the relevant Trust within the meaning of s 328-125(3) of the Income Tax Assessment Act 1997 (‘ITAA97’) and therefore that the Trust was entitled to certain CGT Small Business Reliefs. A company was incorporated in August 2005 and…
The AAT has dismissed a taxpayer’s appeal and upheld amended assessments that had disallowed deductions claimed concerning a property. In 2000, the taxpayer’s husband and his brother inherited a property, which had been in their family since the 1950s. In 2006, the taxpayer purchased her brother-in-law’s interest. She and her husband’s plans were to subdivide…