The AAT has set aside the Commissioner’s decision and held that the supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a medical aid. The taxpayer is registered for GST and supplies a sleep positioning product which assists users to control sleep apnea. The product is made…
The AAT has mostly affirmed the Commissioner’s decision in disallowing a taxpayer’s input tax credits claimed for the periods from 1 January 2007 to 30 September 2010. The taxpayer was the trustee of a trust that operated a motel business, was registered for GST and lodged relevant BASs. The Commissioner audited the taxpayer for the periods from 1 January 2007 to…
The AAT has upheld GST and penalty assessments against a taxpayer but held that the taxpayer’s cancelled GST registration be restored. The taxpayer carried on what the AAT said might be called in layman’s terms a computer repair business. Following an audit of the taxpayer’s BASs for the period 31 March 2007 to 28 February 2011, the ATO issued…
The Federal Court has denied a taxpayer its claims for input tax credits for the periods between 1 July 2004 and 31 December 2006 on the basis of finding it had no entitlement to ITCs in respect of its payment of invoices for the provision of legal services in an individual’s defence of his criminal proceedings and in respect…
The Commissioner has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in MBI Properties Pty Limited v FCT [2013] FCAFC 112. The Full Federal Court had overturned an earlier decision and unanimously held that a taxpayer, that had purchased 3 residential apartments which were subject…
In a recent address, ATO Second Commissioner Geoff Leeper gave an idea of what he said was the ATO’s 2020 vision. By 2020, he said: there will be a whole-of-government account, which will provide businesses with a complete view of their taxation relationship with the ATO; businesses will use software to keep their records; the…
The ATO has advised that it is exploring the concept of how basic assurance work might be done using existing external compliance-assurance processes (ECAP). As part of this project, the ATO says it will consider a new approach to risk-assurance work relating to some publicly listed companies. These would be taxpayers the ATO has categorised…
The Australian Federal Police (AFP), the ATO and the Department of Immigration and Border Protection on Tue 12.11.2013, issued a warning against participating in recent taxation fraud schemes. The warning comes after the agencies recently disrupted an organised criminal syndicate allegedly stealing information and creating fictitious payment summaries to obtain fraudulent refunds. Five offenders allegedly…
The ATO has provided what it calls an early engagement process whereby large businesses can meet with the ATO prior to them making a decision to lodge and amendment or objection request against an income tax assessment. The ATO says this new approach is available for corrections or changes to Large Business Income Tax returns…
The ATO has announced that it is reviewing arrangements involving accountants, lawyers and other professionals operating through partnerships of discretionary trusts. It has issued Taxpayer Alert 2013/3 that describes arrangements where an individual purports to make the trustee of a discretionary trust a partner in a firm of accountants, lawyers or other professionals, but fails…