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Case illustrates primacy of Part IVC in challenging assessments

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Case illustrates primacy of Part IVC in challenging assessments

The strength of the Commissioner of Taxation’s (Commissioner) hand in raising taxation assessments, and the difficulties taxpayers face in challenging a taxation assessment other than under Part IVC of the Taxation Administration Act 1953 (Administration Act) has again been illustrated in the Federal Court decision of Chhua v Commissioner of Taxation [2017] FCA 1127 (Chhua).

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ATO provides a “safe harbour” for fixed trusts

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ATO provides a “safe harbour” for fixed trusts

The Australian Taxation Office (ATO) published the final version of the Practical Compliance Guidelines (PCG) 2016/16, which provides guidance in relation to what will be considered by the Commissioner when exercising his discretion to treat an interest in the income or capital of a trust as being a fixed entitlement and by extension whether a trust is a fixed trust for the purposes of the tax law.

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GST on the sale of residential property – a lesson from the Sebel Manly Beach Hotel

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GST on the sale of residential property – a lesson from the Sebel Manly Beach Hotel

The Administrative Appeals Tribunal (AAT) recently held in the case of MSAUS v FC of T that Division 135 of the Good and Services Tax (GST) Act did not apply to impose an increasing adjustment [an amount of GST on an otherwise GST-free transaction] to the sale of leased residential apartments

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Sladen Snippet - ATO guidance on liability of a legal personal representative of a deceased person

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Sladen Snippet - ATO guidance on liability of a legal personal representative of a deceased person

The Australian Taxation Office (ATO) has released for public comment draft Practical Compliance Guideline (PCG) 2017/D12, which gives guidance to the legal personal representative (LPR) of a deceased person as to circumstances where the LPR may be personally liable for the deceased’s tax liability.

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Sladen Snippet - Commissioner is under no duty to issue amended land tax assessments

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Sladen Snippet - Commissioner is under no duty to issue amended land tax assessments

The High Court of Australia has recently allowed an appeal against a decision of the Victoria Court of Appeal and held that the Commissioner was not under a duty to issue amended assessments and refund an excess amount of land tax that has erroneously been paid by a taxpayer.

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Partner is denied access to partnership’s carried forward tax losses

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Partner is denied access to partnership’s carried forward tax losses

The Administrative Appeals Tribunal (AAT) has recently held that tax losses were not available to a partner in a property development partnership.

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Consolidations - ACA calculations and pre-CGT assets - High Court denies special leave in Financial Synergy Holdings case

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Consolidations - ACA calculations and pre-CGT assets - High Court denies special leave in Financial Synergy Holdings case

Financial Synergy Holdings Pty Ltd v FC of T [2016] FCAFC 31 - High Court denies application for special leave to appeal

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Sladen Snippet - ATO update to the AXA Part IVA Decision Impact Statement and PS LA 2005/24

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Sladen Snippet - ATO update to the AXA Part IVA Decision Impact Statement and PS LA 2005/24

The ATO has recently updated its Decision Impact Statement on FCT v AXA Asia Pacific Holdings Ltd 2010 ATC 20-224 to include amendments made in September 2016. 

 

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"The mere existence of a “service agreement” will not mean “service charges” are deductible".

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"The mere existence of a “service agreement” will not mean “service charges” are deductible".

The Administrative Appeals Tribunal’s decision in Case 4/2016 illustrates the importance of observing the terms of a Services Agreement and ensuring that the actions of the parties to the agreement are consistent with the written agreement.

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Modest and infrequent maintenance activities of a property whose “main use” is to derive rent will not entitle a taxpayer to access the small business CGT concessions.

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Modest and infrequent maintenance activities of a property whose “main use” is to derive rent will not entitle a taxpayer to access the small business CGT concessions.

In its recent decision in The Executors of the Estate of the late Peter Fowler and Commissioner of Taxation, the Administrative Appeals Tribunal (AAT) held that Mr Fowler was not entitled to apply the small business capital gains tax (CGT) concessions in Division 152 of the Income Tax Assessment Act 1997, on the sale of a block of 10 residential units (Manly Property) as he was not carrying on a business and the Manly Property did not qualify as an “active asset”.

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Profit from the development and sale of a commercial property on capital account despite development activities undertaken by private family group

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Profit from the development and sale of a commercial property on capital account despite development activities undertaken by private family group

The Administrative Appeals Tribunal (AAT) recently held in FLZY and Commissioner of Taxation that profit arising from the sale of a building by a family trust gave rise to a capital gain despite the property building, development and investment activities undertaken by the privately held family group (Group).