The taxpayer has discontinued his appeal to the Federal Court against the AAT’s decision in Yazbek v FC of T [2014] AATA 423; 2014 ATC ¶10-369. The case concerned the derivation of dividend income and whether it was “paid” to the taxpayers for purposes of s 44 of the ITAA 1936.
[IT 10/3/15] [LTN 47, 11/3/15]
Extract from AAT decision
TAXATION – Income Tax –whether dividends derived by partnership or individuals – whether dividend “paid” to applicants – “paid” includes payment by direction – failure to include dividends in assessable income – penalties – reckless as to operation of taxation law – reliance on professional advice – failure to obtain independent review does not amount to recklessness – failure to take reasonable care – decisions in respect of primary liabilities affirmed, decision in respect of shortfall penalty set aside and substituted