The AAT has upheld assessments including the proceeds from the sale of mining tenements in a taxpayer’s assessable income on the basis that he was carrying on a business of buying and selling mining tenements with a view to profit in partnership.
In so finding, the AAT rejected the taxpayer’s argument that the sale proceeds were not assessable on the grounds that he did not receive any of the proceeds, which instead went to a company associated with him or to one of the other co-owners of the 6 tenements. Rather, the AAT said it was enough that the sale proceeds were dealt with as he directed, or on his behalf, and were thus derived by him for the purposes of s 6-5(4) of the ITAA 1997.
(AAT Case [2014] AATA 759, Re Kirkby and FCT, AAT, Hack DP, 21 October 2014.)
[LTN 204, 22/10/14]