The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Tracey J in VN Railway Pty Ltd & Anor v FCT [2013] FCA 265. In that case, the Federal Court upheld a 75% tax shortfall penalty imposed on the trustee of a family trust operating independent supermarkets after ruling that the taxpayer had not been denied procedural fairness and that it was open for the AAT to find the taxpayer had “intentionally disregarded” its tax obligations under s 226J of the ITAA 1936.
[FJM Note: At first instance, the Court found that contributions by an employer supermarket business to a superannuation fund for family members were not deductible. See last month.]
[LTN 80, 30/4/13]