The taxpayer has appealed to the Full Federal Court against the decision in Kocharyan v FCT [2015] FCA 13. The Federal Court rejected the taxpayer’s appeal against an earlier AAT decision concerning amended assessments. Originally, the AAT (in Re Confidential and FCT [2014] AATA 32) affirmed objection decisions made by the Commissioner to deny the taxpayer deductions of close to id=”mce_marker”m concerning partnership losses in relation to his investment in a forestry managed investment scheme. Among other things, the AAT found the returns had been lodged by his tax agent with his authority and that he had failed to discharge the onus of showing that the scheme had not been entered into or carried out for the sole or dominant purpose of the individual obtaining a “scheme benefit”.
[LTN 34, 20/2/15]
FJM Note
This looked like an investment in the arrangement in which Ludekins was the promoter (and was prosecuted for it under the ‘Promoter Penalties’ provisions).