Category Archives: Tax Month – June 2012

*Barossa Vines Limited v FCT – Leave granted to amend application to contest ATO decision to withdraw product rulings [33]

The Federal Court has granted a company’s request to be granted leave to file an amended originating application in relation to the Commissioner’s decision to withdraw 3 product rulings that had been issued to the company. The rulings were withdrawn on the grounds that there was a “material difference” in the way in which the…

*DCT v Hua Wang Bank Berhad (No 3) & Ors – Wickenby matter: GIC remitted, but stay refused because foreign taxpayers would remit funds overseas [32]

The Federal Court has ordered that GIC be excised from assessments issued to several taxpayers, but that their application to stay the Commissioner’s proceedings against them (to enforce earlier summary judgments made against them by the Federal Court) be denied. In a judgment by Kenny J of the Federal Court on 25 November 2010, a…

*FCT v Traviati – matter remitted to AAT after it erred in remitting 5% penalty – it should decide ‘careless’ issue first and ‘reasonably arguable’ issue second – ‘harshness’ irrelevant given scheme of provisions [31]

The Federal Court has allowed the Commissioner’s appeal from the decision in AAT Case 2011 AATA 478, Re Traviati and FCT, in which the AAT remitted 5% shortfall penalties in relation to the denial of over $1.5m in deductions for investments in a retirement village investment scheme. The AAT remitted the penalty on the basis…

*MTAA Superannuation Fund (R G Casey Building) Property Pty Ltd v FCT – Taxpayer loses appeal re GST refund claims for supplies under amended pre-GST leases [30]

In a decision handed down on Wed 20.6.2012, the Full Federal Court has dismissed a taxpayer’s appeal from an AAT decision that had denied the taxpayer’s claim that supplies made under amended pre-GST leases during the relevant periods were GST-free pursuant to s 13 of the GST Transition Act. The taxpayer had claimed refunds totalling…

*FCT v Greenhatch – CGT: only discounted part of gain included in beneficiary’s assessable income [29]

In a decision handed down on 7.6.2012, the Full Federal Court allowed the Commissioner’s appeal and set aside the decision in AAT Case [2011] AATA 479, Re Greenhatch and FCT and held that the assessable income of a beneficiary presently entitled to a discounted capital gain made by the trust was only the discounted proportion…

*Fortescue Metals Group lodges Constitutional challenge to the mining tax [28]

Fortescue Metals Group Ltd announced that on Fri 22.6.2012, it had lodged a challenge in the High Court against the Federal Government’s Minerals Resource Rent Tax (MRRT) on constitutional grounds. Fortescue Chief Executive Officer: Nev Power said Fortescue had taken legal advice and was challenging the tax on the grounds that the MRRT: discriminates between…

Hart v Cwth DPP – taxpayer accountant refused leave to appeal against $14.7m pecuniary penalty order [27]

The High Court on Fri 8.6.2012, refused the taxpayer special leave to appeal against the Qld Court of Appeal decision in Hart v Commonwealth Director of Public Prosecutions [2011] QCA 351. The Court of Appeal had dismissed an appeal by an accountant against a 30 November 2010 decision of the District Court of Qld which…

*FCT v Byrne Hotels – Commissioner can’t appeal decision that for $5m net value purposes an agent’s commission for the sale of a hotel counts [26]

The High Court, on Fri 8.6.2012, refused the Commissioner special leave to appeal against the Full Federal Court decision in FCT v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127. The Full Federal Court decision had by majority confirmed that for the purposes of accessing the CGT small business concessions, a real estate agent commission…

Business Tax Working Group releases Consultation Guide – how to get to a revenue neutral reduction in the company tax rate [25]

The Business Tax Working Group has released a Consultation Guide to provide stakeholders with an understanding of how the Working Group plans to involve the community in its consideration of business tax reform. The Government has asked the Working Group to focus its attention on how a revenue neutral cut to the company tax rate…

Accountants’ exemption from Financial licensing requirements finally announced [24]

The Minister for Financial Services has announced the long-awaited replacement for the accountants’ exemption re providing superannuation and financial advice. On Saturday, 23 June 2012, the Minister announced a new limited Australian Financial Services Licence (AFSL) for accountants. In addition to being able to advise on self-managed superannuation funds and superannuation generally, licence holders will…