The ATO on Wed 5.9.2012, released the following Decision Impact Statements:
- Mount Pritchard & District Community Club Limited v FCT [2011] FCAFC 129 – In that case, the Full Federal Court unanimously held that assessments issued by the Commissioner were not in breach of s 170BB of the ITAA 1936 or s 357-60 of Sch 1 to the TAA even though the assessments were inconsistent with a Private Ruling issued to the taxpayer. In the Decision Impact Statement, the ATO said the decision in the case supports the proposition that a review or an appeal under Pt IVC is the proper avenue for a taxpayer seeking review of an income tax assessment on the basis that it is excessive [on grounds that it exceeds the ruled amount to which the Commissioner is bound].
- AAT Case [2012] AATA 348, Re JCZC and FCT – In that case, the AAT reduced a tax shortfall penalty from 50% to 25% after finding that a taxpayer and its tax agent were not “reckless” in claiming $3.1m in deductions for a boat owned by a related trust. According to the Decision Impact Statement, the ATO said it accepts that it was reasonably open to the Tribunal, on the evidence, to find the taxpayer and its agent had not acted recklessly in claiming the relevant deductions for the boat.
- AAT Case [2012] AATA 174 – In that case, the AAT partly affirmed the decision of the Commissioner to disallow additional deductions in relation to a rental property as the taxpayer was not able to substantiate some of the claims. The ATO said in the Decision Impact Statement that the case was decided on the facts and will not have any impact on existing or future litigation proceedings.
[LTN 172, 5/9]