Tax cases: September 2024

Full Federal Court:

Sladden v Commissioner of Taxation [2024] FCAFC 122

19 September 2024 | O’Sullivan, Hespe and Neskovcin JJ

TAXATION — appeal from a decision of the Administrative Appeals Tribunal affirming the decision of the Commissioner of Taxation to disallow the applicant’s objection to an income tax assessment — where claim made by applicant for future income protection benefit entitlements under a policy of insurance which also included provision for Life Insurance — where applicant receives sum in settlement of claim for income benefits — where the AAT found the settlement sum is characterised as assessable ordinary income — where the settlement also included a component for the Life Insurance — whether AAT erred in determining the nature of the settlement sum other than entirely by the terms of the deed of release — whether the AAT erred in characterising the settlement sum as being entirely income in character by reference to parties’ subjective state of mind — lump sum settlement in satisfaction of the applicant’s claim for income benefits under the policy — appeal dismissed

Full decision here

Federal Court:

Youssef v Commissioner of Taxation (De-anonymisation) [2024] FCA 1033

5 September 2024 | Perram J

PRACTICE AND PROCEDURE – anonymisation of party names – where Applicants’ names anonymised in proceeding before the Administrative Appeals Tribunal under s 14ZZE of Taxation Administration Act 1953 (Cth) – where anonymisation replicated in Federal Court proceeding without suppression order

Full decision here

Administrative Appeals Tribunal:

WTBW and Commissioner of Taxation (Taxation) [2024] AATA 3268

11 September 2024 | Senior Member R Olding

INCOME TAX – DIVISION 293 TAX – whether an election is required for excess concessional contributions for an income year to be increased by the unused concessional contributions cap from earlier years or the increase applies by force of the statute – held no election required and taxpayer cannot elect that an amount carried forward not be applied – decision affirmed

Full decision here

Fragmentary Pty Ltd and Screen Australia [2024] AATA 3316

18 September 2024 | Senior Member A Poljak

INCOME TAX ASSESSMENT — Tax Offset — Producer Tax Offset — Production Expenditure — Qualifying Australian Production Expenditure — Australian Feature Film — Whether the Applicant carried out, or made the arrangements for the carrying out of, all activities necessary for the making of the film — Decision affirmed

Full decision here

BSKF and Commissioner of Taxation [2024] AATA 3377

20 September 2024 | Senior Member R Olding

TAXATION – INCOME TAX – whether assessments excessive if contrary to settlement deed between applicants and respondent – whether general interest charge on a tax liability extinguished by a settlement deed remains deductible and when credited to the taxpayer’s account is accessible as a recoupment – whether an amending assessment is required to give effect to a determination under s 177EA of the Income Tax Assessment Act 1936 – whether s 177EA determination should have been made – whether Tribunal has jurisdiction to consider whether a notice issued under s 8AAZN of the Taxation Administration Act 1953 to recover a refundable tax offset is valid – whether Commissioner may increase assessment of administrative penalty at objection – whether applicants exercised reasonable care or were reckless or intentionally disregarded the law – whether 20% uplift in base penalty should be remitted where the shortfall arises out of the same conduct – whether penalty should be remitted on other grounds – whether shortfall interest charge should be remitted

Full decision here

Karamanli and Commissioner of Taxation [2024] AATA 3398

25 September 2024 | Senior Member D Benk

Deductions claimed in gaining or producing assessable income – whether expenses of a private, capital or domestic nature – onus of proof – rules for general deduction – apportionment and substantiation – decision affirmed

Full decision here

The Trustee for the Peter Hatfield Trust and Commissioner of Taxation [2024] AATA 3428

26 September 2024 | Senior Member D K Grigg

TAX – superannuation guarantee charge – whether correctly imposed – whether a contracted plumber is a deemed employee pursuant to section 12(3) of the Superannuation Guarantee (Administration) Act 1992 – features indicate contract not “wholly or principally for the labour of a person” – decision under review set aside

Full decision here