High Court refuses leave in Greensill case
The High Court has refused the taxpayer’s application for special leave to appeal from the Full Federal Court in the decision in Peter Greensill Family Co Pty Ltd (Trustee) v FCT [2021] FCAFC 99. In that case, the Full Court held that the trustee of a resident discretionary trust was assessable on capital gains arising from the sale of “non-taxable Australian property” (in the form of shares) to which foreign residents were presently entitled.
ATO warning re illegal phoenix activity
The ATO has warned of inappropriate insolvency advice that could lead to illegal phoenix activity. While the ATO emphasises that it is important to seek specialist advice from a qualified and registered insolvency practitioner if a business is insolvent or struggling to pay its debts, the ATO has also warned of the danger of obtaining illegal phoenix advice. According to the ATO, this can involve insolvency advisers suggesting actions designed to help directors avoid paying their creditors and create new companies to continue on without debts.
Draft Ruling on s 100A reimbursement agreements to be issued
The ATO proposes to release Draft Taxation Ruling TR 2022/D1 (Income tax: section 100A reimbursement agreements) this week. It will set out the Commissioner’s view about what is a reimbursement agreement for the purpose of s 100A of the ITAA 1936. It will provide the Commissioner’s view on key elements of section 100A including what is: a purpose of eliminating or reducing someone’s income tax; an agreement, arrangement or understanding entered into in the course of an ordinary family; or commercial dealing.
