Beware of lodging income tax returns on behalf of others The Tax Practitioners Board (TPB) has recently investigated a number of tax agents who lodged income tax returns containing false payment summaries and other false information. The income tax returns were lodged in the names of genuine taxpayers whose identities had been stolen. Third parties […]
Taxpayer’s operations didn’t stack up as a share trader
Taxpayer’s operations didn’t stack up as a share trader This case involved a council worker who claimed that he was also a share trader, not merely a share investor. While the AAT member said that it was more than a hobby, he said that it was not a business. Strange? Wouldn’t one think that if […]
Excess super contributions: a case with a twist
Excess super contributions: a case with a twist This case involved a taxpayer who deposited $430,000 into his super fund. When the GFC hit, he panicked and withdrew half. Six months later he reconsidered, and redeposited another $100,000. He thought on a net contribution basis, he was OK given that he had withdrawn about $200K. […]
Be careful about property arrangements with family
The AAT has held that a taxpayer who was a joint tenant of a townhouse with his son (who lived there) did not hold his interest in the property on trust for his son, and so he was liable for CGT on disposal of his share of the property. Facts In April 2002, the taxpayer […]
Independent contractors ’employees’ for SG purposes
The AAT has held that a trust carrying on a commercial and residential plumbing business (called ‘Hall Plumbing’) did not meet its superannuation guarantee (SG) obligations in respect of five of its plumbers that it had treated as independent contractors. Facts The taxpayer contended that the five plumbers were independent contractors and not employees, based […]
Taxpayer (and tax agent) slammed on record keeping
Taxpayer (and tax agent) slammed on record keeping The AAT has upheld the application of a 50% penalty to a taxpayer (who claimed to rely entirely on his tax agent) for ‘recklessness’ in claiming deductions that couldn’t be substantiated. Facts In the 2011/12 tax year, in a tax return lodged by his tax agent, the […]
