Category Archives: Tax Month – June 2019

Schweitzer v CofT – Taxpayer unsuccessful in seeking hardship release from tax-related liabilities – including for some technical reasons

On 29 May 2019, in Schweitzer v CofT – the AAT upheld the Commissioner’s decision not to release some very old liabilities, under the hardship provisions in Div 340 of the TAA53. There were some technical reasons of interest as well has not being able to show that failure to release these debts would cause…

Bosanac v CofT – on a rehearing, the AAT remits the shortfall penalty from 75% to 60% where taxpayer’s tax agent failed to include a net capital gain he knew about

On 10 June 2019, in Bosanac v CofT, the AAT reheard the issue of remitting shortfall penalty and decided that the penalty should be reduced from the 75% ‘reckless’ benchmark, down to 60% (but said it could not be remitted below the 50% level for reckless omission of the net capital gain. See below for…

Brooks v CofT – AAT upheld disqualification from being SMSF trustee and assessment of super funds lent out before ‘condition of release’

In Brooks v CofT, the AAT upheld the Commissioner’s decision to disqualify an SMSF director and shareholder for presiding over an undocumented loan from the fund, to he and his wife, of $257,000. It also upheld an assessment, including the loan receipt as a superannuation benefit prior to a condition of release. See below for…

This has nothing to do with tax but – the High Court decided that a sperm donor …

This has nothing to do with tax but – the High Court decided that a sperm donor was a ‘parent’ and entitled to a ‘parenting order’ under the Family Law Act 1975 (I thought I should get my head out of the tax books for this one). This was in Masson v Parsons, decided on…

NSW Payroll Tax – Downer EDI Engineering Pty Ltd v Chief Comr of State Revenue – payments to subcontractors to install Foxtel equipment not subject to payroll tax

The NSW Supreme Court has found that a taxpayer company was not subject to payroll tax on payments to third party subcontractors to install equipment for Foxtel Subscription Television at the premises of Foxtel customers. It was a ‘relevant contract’ issue. See below for a further discussion of the case. FJM 1.7.19 [Tax Month –…

Scone Race Club Limited v CofT – Thoroughbred racing club not employer of jockeys; no SG obligations

On 21 June 2019, the Federal Court held that a horse racing club that paid jockeys through a centralised system was NOT an ’employer’ of the jockeys and had no obligation to pay superannuation (or at least, no liability to pay the Superannuation Guarantee Charge, if it had not made equivalent contributions to superannuation funds…

Vale Michael Andrew AO – Chair of the Board of Taxation and so much more…

  Message from the Board of Taxation Vale Michael Andrew AO It is with great sadness that the Board of Taxation (the Board) acknowledges the passing of its Chair, Michael Andrew AO, on Sunday 23 June. Michael was a highly respected member of the business and tax community as is reflected in the statement made…

TD 2019/D1 – the ATO’s controversial draft determination on the extent of ‘demerger’ relief – the Tax Institute’s view (a ‘U-turn’ at least…)

In The Tax Institute’s newsletter: TaxVine (24, 28 June 2019), contained Louise Boyce’s National Technical Committee Chair’s Report, on the ATO’s controversial draft determination: TD 2019/D1, on the extent of demerger relief they think is available, under the law. Louise Boyce is Tax Counsel at Squire Patton Boggs, a global business law firm with 47 offices…

Trustee for the Seabreeze Estate Unit Trust v CofT – GST: eligible to sell on the margin scheme – onus discharged without documentary evidence

On 21 June 2019, the AAT (Lazanas SM) decided that Seabreeze (a pseudonym) had acquired land under the margin scheme, and was, therefore, eligible to also apply the ‘margin scheme’ to the sale of the town houses it had developed on the land. The twist was the lack of evidence, and how the taxpayer discharged…

Mingos v CofT – Taxpayer appeals Federal Court’s decision denying him the ‘main residence’ exemption on a distribution of the gain on the discretionary trust’s house

The taxpayer has appealed to the Full Federal Court against the decision of Davies J in Mingos v CofT [2019] FCA 834. The Federal Court had held that the taxpayer was not entitled to the CGT main residence exemption as he did not have an “ownership interest” in a property sold by a discretionary trust. See…