Category Archives: Tax Month – September 2012

*Sea Shepherd appeals to Federal Court on its DGR status [33]

The taxpayer has appealed to the Federal Court from the decision in AAT Case [2012] AATA 520, Re Sea Shepherd Australia Limited and FCT. The AAT had upheld the Commissioner’s decision that Sea Shepherd Australia Ltd was not entitled to be endorsed as a deductible gift recipient. [The contest was principally over the application of…

*DCT v Gashi & Anor – Court maintains 2010 freezing orders over wife’s assets despite her assessment being reduced from $1,600k to $42k plus penalties [31]

The Victorian Supreme Court has refused a taxpayer’s application to set aside freezing orders made on 26 March 2010 and continued on 14 April 2010. The taxpayer is the second defendant and wife to the first defendant. The Supreme Court noted the facts as set out in Bell J’s reasons for continuing the freezing orders…

*Legal Services Commissioner v Turner – Leave granted to contest reprimand imposed by VCAT 10 years failure to lodge tax returns [32]

The Supreme Court of Victoria has granted the Legal Services Commissioner’s application for leave to appeal from an order made by the Victorian Civil and Administrative Tribunal which imposed sanctions on a barrister for various tax offences over a 10-year period (including the non-payment of tax) which the Commissioner considered inadequate as they only involved…

*DCT v Zammitt – No recovery of penalty under new DPN regime – requirement not met [30]

The NSW District Court has dismissed a Deputy Commissioner’s claim for recovery of penalties of over $365,000 notified in a director penalty notice (DPN). The DPN was served on the taxpayer but specified the wrong date for the remission of penalties. The Commissioner claimed that the repeal of the original legislation under which the DPN…

Re Wray-McCann and FCT – Commissioner’s refusal to withdraw District Court proceedings not reviewable in the AAT [29]

The AAT has held it had no jurisdiction to hear a taxpayer’s application to have it review the Commissioner’s decision to refuse to dismiss District Court proceedings against him in respect of alleged contraventions of the Financial Transactions Reports Act 1988 (Cth). In effect, the AAT found that a decision made under a Commonwealth Act…

*Re Pala and FCT – Accountant’s failure to remit PAYG on his own remuneration results in penalties for ‘intentional disregard of the law’ and uplift [28]

The AAT has affirmed that a taxpayer, a sole director and employee of a company, was liable to an administrative penalty of 75% for the 2006 to 2008 years in relation to PAYG amounts deducted from salary and wages which were not remitted to the ATO. The taxpayer was a qualified accountant who had practised…

Re Suburban Property Owner and FCT – No deduction for interest on inter-entity loans – insufficient evidence [27]

The AAT has affirmed the Commissioner’s decision that a company was not entitled to claim interest deductions of $11m over a 10-year period in respect of loans apparently made to it by a related company. It did so on the basis of what it said was the paucity of primary evidence supporting the existence of…

*Re Siddiqi and FCT – Amended assessments following cash economy audit mainly affirmed [26]

The AAT has held that a taxpayer had failed to discharge the onus of proving that disputed bank deposits were not the result of payments received in the course of conducting his business activities for the 2008 and 2009 income years. In May 2010, the taxpayer was selected for a cash economy audit by the…

*Re Sully and FCT – Taxpayer was a resident of Australia: domicile test satisfied [25]

The AAT has held a taxpayer was an Australian resident for the income year ended 30 June 2009 as he had satisfied the domicile test under s 6(1) of the ITAA 1997. The taxpayer worked as a marine engineer and left Australia in April 2008 to work for a company in Dubai. During the relevant…

*Re Nelson and FCT – Taxpayer not carrying on primary production business – activities preparatory [24]

The AAT has affirmed that a taxpayer was not carrying on a business of primary production during the 2004-2009 years of income on his 500 acre property in Queensland and that therefore he was not entitled to deductions in respect of improvements he made to the property and other expenses he incurred. Essentially, the AAT…