In a recent case, the Full Federal Court has found that severalntaxpayer companies had not discharged the onus of proving that assessments thenCommissioner of Taxation issued to them were excessive. The amended assessmentsntook into account income of some $4 million that the Australian companiesnreceived from overseas sources. The taxpayers had claimed that the payments werenloans.
In allowing the Commissioner’s appeal, the Court majority heldnthat it would not be appropriate to find that the taxpayers had provided thenrequired proof that the payments were genuine loans; in fact, they had madeninconsistent or “alternative” arguments about the nature of the payments.Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.