Neil Brydges

Federal Court reminds us of the complexity of income tax deductibility, and what it means to carry on a business.

Federal Court reminds us of the complexity of income tax deductibility, and what it means to carry on a business.

In Watson as trustee for the Murrindindi Bushfire Class Active Settlement Fund v Commissioner of Taxation [2019] FCA 228 (Watson), the Federal Court ruled that an investment trust established to hold funds received as compensation for victims of the black Saturday bush fires could not deduct administrative expenses associated with the trust’s operation.  

ATO Decision Impact Statement on Pintarich – troubling views on when a decision may not be a decision

ATO Decision Impact Statement on Pintarich – troubling views on when a decision may not be a decision

We previously reported here and here on the Full Federal Court decision of Pintarich v Deputy Commissioner of Taxation [2018] FCAFC 79 (Pintarich) and the unsuccessful application for special leave to the High Court.

No Discount Capital Gain On The Sale Of Shares - Paule V FCT, Hart v FCT [2019] FCA394

No Discount Capital Gain On The Sale Of Shares - Paule V FCT, Hart v FCT [2019] FCA394

The Federal Court has ruled, in a decision that the Court itself described as an “unpalatable result”, that the capital gains tax (CGT) discount did not apply to the sale of shares held by a trust.

Sladen Snippet – ATO to seek special leave to appeal to the High Court in Harding

Sladen Snippet – ATO to seek special leave to appeal to the High Court in Harding

We previously reported here in relation to the Full Federal Court decision in the residency case of Harding v COT [2019] FCAFC 29 (Harding) which found in favour of Mr Harding, reversing the Federal Court’s decision at first instance.

Draft Tax Determination highlights the risks of back-to-back CGT Roll-overs.

Draft Tax Determination highlights the risks of back-to-back CGT Roll-overs.

We have previously written on the ATO releasing guidance on demergers and back-to-back CGT roll-overs. The ATO recently released Draft Taxation Determination TD 2019/D1 concerning demergers although the ATO’s draft views may be illustrative of the Commissioner’s views in the context of back-to-back CGT rollovers.

Sladen Legal trio voted among Australia’s Best Lawyers

Sladen Legal trio voted among Australia’s Best Lawyers

Sladen Legal’s Daniel Smedley, Neil Brydges and Phil Broderick have received recognition in the 12th Edition of The Best Lawyers in Australia. The list of impressive legal professionals was announced in the Australian Financial Review on 22 March 2019.

Sladen Snippet - Tax audits on rental properties

Sladen Snippet - Tax audits on rental properties

As reported recently by The Age and ABC News, the Australian Taxation Office (ATO) is targeting property investors particularly taxpayers who may have made mistakes, errors or false claims on their tax returns in relation to property owned for investment purposes.

Sladen Snippet - Active Asset Test – land used for storage: Eichmann v Commissioner of Taxation [2019] AATA 162

Sladen Snippet - Active Asset Test – land used for storage: Eichmann v Commissioner of Taxation [2019] AATA 162

The Administrative Appeals Tribunal (AAT) has determined that land, used to store tools and materials for the purposes of operating a business, constituted an “active asset” for the purposes of the small business capital gains tax (CGT) concessions.

Sladen Snippet - ATO changes it view on what is love and affection

Sladen Snippet - ATO changes it view on what is love and affection

On 6 February 2019, the Australian Taxation Office (ATO) withdrew its long-standing Interpretative Decision 2003/589 that a company can forgive a debt owed by a natural person for reasons of “natural love and affection” and not trigger consequences under the commercial debt forgiveness rules.

Satyam Computer - Double Tax Agreements: a sword not a shield

Satyam Computer - Double Tax Agreements: a sword not a shield

On 11 October 2018, the Full Federal Court in Satyam Computer Services Limited v CoT (2018) held the ‘source’ rule in Article 23 of the Australia–India Double Taxation Agreement (Indian DTA) prevailed over the domestic definition such that payments from Australia to a company in India for work performed in India was taxable in Australia.

Here we go, Treasury releases Division 7A consultation

Here we go, Treasury releases Division 7A consultation

As we have previously reported, the Government announced in the 2017 Budget that amendments would be made to Division 7A incorporating recommendations from the 2014 Board of Taxation’s final report on the ‘Post Implementation Review of Division 7A of Part III of the Income Tax Assessment Act 1936’ (the earlier report).

Trust vesting – the Commissioner finalises his views

Trust vesting – the Commissioner finalises his views

On 15 August 2018, the Commissioner finalised his views on trust vesting in Taxation Ruling TR 2018/6. We previously commented on the draft (TR 2017/D10) version of this ruling here.