Vic land tax: Frontlink Pty Ltd v Comr of State Revenue – taxpayer’s appeal dismissed re primary production exemption – failed largely on failing to discharge onus

A taxpayer has been unsuccessful in its appeal to the Victorian Supreme Court, from a decision of the Victorian Civil and Administrative Tribunal, which ruled that it was not entitled to the primary production land tax exemption for various properties over a number of years. The taxpayer was a land developer and lessor of land.…

Re The Study and Prevention of Psychological Diseases Foundation Incorporated and FCT – Revocation of tax exempt status applies from date of original endorsement

In Study and Prevention of Psychological Diseases Foundation v FCT [2015] FCA 1117, the Federal Court remitted this matter back to the AAT, to determine the date from which the taxpayer’s tax exempt endorsement as a charity should be revoked. On being remitted, the AAT has now determined that the revocation should apply from 1 January 2005,…

DCT v Frangieh (No 3) – Taxpayer fails in claim of conscious maladministration against DCT

A taxpayer, whose assessment for the year ended 30 June 2007  was amended in 2014 to include unexplained deposits of $3.5m following an audit, has been unsuccessful in his action against the Commissioner for misfeasance in public office, abuse of process and breach of duty of good faith (ie “conscious maladministration”). Instead, the NSW Supreme Court found that the…

Re Davy and FCT – Work-related travel deductions in excess of actual expenses disallowed – the ‘maximum reasonable amount’ is just an exception from the substantiation amount (and not a license to claim more than incurred)

A taxpayer’s claim for work-related travel deductions in excess of the amounts he incurred has been unsuccessful. The taxpayer was an employee truck driver who was required to be away from home on most working days. He claimed work-related travel expense deductions for the 2011 and 2012 income years totalling just over $42,000. The deductions…

TD 2017/8 – Cost of travelling to have a tax return prepared is deductible – if unrelated purposes of the travel are appropriately apportioned

The Commissioner issued this Determination on Wed 29.3.2017, ruling that the cost of travelling to have a tax return prepared by a “recognised tax adviser” is deductible under s25-5 of the ITAA 1997. However, to the extent that the travel relates to another non-incidental purpose the expenditure must be apportioned. The Determination contains a number…

TD 2017/2-6 – FBT rates and thresholds for 2017-18 FBT year

On Wednesday 29.3.2017, the Commissioner released the annual Taxation Determinations of FBT rates, thresholds and other amounts for the 2017-18 FBT year (ie 1 April 2017 to 31 March 2018). TD 2017/2: The FBT record-keeping exemption threshold for 2017-18 is $8,393 (up from $8,286). TD 2017/3: The benchmark interest rate for the 2017-18 FBT year is 5.25% per annum (down from 5.65%). The…

Re The Norwestern Trust and FCT – GST: GST shortfall validly assessed (because of fraud or evasion) and no remission allowed for the $279k 75% penalty (for failure to lodge) – 13 reminders and still failed to lodge

The AAT has affirmed the Commissioner’s decision not to remit 75% penalties of $650,000 imposed on a taxpayer under s284-75(3) and s284-90 of Sch 1 to the TAA for failing to lodge 13 BAS returns between 2007 and 2011 – a period during which it sold 7 out of 10 townhouses it had developed in suburban…