The taxpayer has appealed to the Full Federal Court against the decision of Pagone J in Haritos & Anor v FCT [2014] FCA 96. The Federal Court had dismissed the taxpayers’ appeal from an AAT decision that had found the taxpayers failed to discharge the burden of proving that assessments raised by the Commissioner under s 167 of the ITAA 1936 were excessive. The assessments were in respect of $20m deposited into the personal bank account of the taxpayers over a 4-year period from a private company, which ran a cleaning service business. These amounts were treated as assessable to them as ordinary income or as unfranked dividends or deemed dividends.

[LTN 51, 17/3/14]