Taxpayer failed to prove that payments were “loans”

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. n […]

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Taxation ruling on commercial website deductibility

A new taxation ruling from the ATO sets out the tax deductibilitynof expenditure incurred in acquiring, developing, maintaining or modifying ancommercial website for use in carrying on a business. n Broadly, the ruling explains that acquiring or developing ancommercial website for a new or existing business is considered to be a capitalnexpense, and is therefore […]

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New ATO data-matching program: ride-sourcing

The ATO has announced a new data-matching program involvingnride-sourcing providers. Under the program, the ATO will acquire data tonidentify individuals who may be engaged in providing ride-sourcing servicesnduring the 2016–2017 and 2017–2018 financial years. Details of all paymentsnmade to ride-sourcing providers from accounts held by a ride-sourcingnfacilitator will be requested from the facilitator’s financial institution […]

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Admin penalties of 75{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} for failing to lodge FBT returns

The AAT has confirmed that 75{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} administrative penalties werenrightfully imposed on several companies for their failure to lodge FBT returnsnover a four-year period. The AAT found that the Commissioner of Taxation wasnobliged to impose a 75{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} administrative penalty because the FBT returns were notnlodged, and that the “safe harbour” provisions did not apply to such […]

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No disclaimer of trust interest: unsuccessful appeal

A beneficiary of two trusts whose assessable income wasnincreased from some $70,000 to some $13 million in light of hernentitlement to distributions from the trusts has been unsuccessful in claimingnon appeal that she had “disclaimed her interests” in the trusts. Instead, thenAAT found that she could not argue she had disclaimed her interests in thendistributions. This […]

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ATO develops work-related expenses risk profiles

The ATO has developed work-related expenses risk profiles tonhelp it identify how work-related expense deduction amounts compare for similarntaxpayers. The ATO said improvements in data analytics and modelling havenallowed it to create a risk profile for tax agents’ practices based on comparingntheir clients’ work-related expenses claims with those made by similarntaxpayers. n The ATO has […]

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Onus on taxpayers to show no fraud or evasion: Full Federal Court

Several taxpayers have been unsuccessful in their appeals to thenFull Federal Court in which they challenged tax assessments that dramaticallynincreased their assessable income for certain income years. In each case, thenCourt confirmed that where the Commissioner of Taxation has issued an amendednor default assessment out of time on the grounds of taxpayer “fraud or evasion”,nthe […]

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ATO priority on settling cases – but not at any cost

The ATO has advised that it places a high priority onnresolving tax disputes early, including through reaching settlements wherenappropriate, but that it will not settle disputes at any cost. It says “thensensible use of settlements” is part of its commitment to earlier and moreneffective dispute resolution. In this regard, the ATO has advised that in […]

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Contrived trust arrangements in ATO sights

The ATO hasncautioned taxpayers against arrangements that seek to minimise tax by creatingnartificial differences between the taxable net income and distributable incomenof closely held trusts. Deputy Commissioner Michael Cranston said the ATO isninvestigating arrangements where trustees are engineering a reduction in trustnincome to allow taxpayers to improperly gain favourable tax breaks, ornsometimes to pay no […]

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Payment was assessable as “deferred compensation”

n n The High Court has unanimously dismissed a taxpayer’s appeal and held that payments of US$160 million made to him pursuant to an incentive “profit participation plan” after termination of his employment was income according to ordinary concepts. In particular, the Court found that the payments were “deferred compensation” for the services the taxpayer performed […]

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