The AAT has affirmed amended assessments issued to a taxpayer for the 2003 to 2005 income years to include 100% of the rental income and deductions in relation to a commercial property owned by the taxpayer.
The taxpayer had lodged his income tax returns on the basis that the rental income derived in respect of the property was shared equally between himself and his wife. However, the Commissioner formed the view that the rental income from the property belonged to the taxpayer alone as the property was in the taxpayer’s name only. The Tribunal did not accept the taxpayer’s claim that the property was an asset of a “tax law partnership”. The Tribunal held the evidence did not show that the property was “jointly owned”, nor were the couple in receipt of income jointly. Accordingly, the amended assessments were affirmed.
(AAT Case [2013] AATA 8, Re Harbutt and FCT, AAT, Ref Nos: 2011/3485-3487, Frost DP, 11 January 2013.)
[LTN 8, 14/1/13]