The 2021 calendar year yet again reflected the changing landscape of interpretation and guidance offered by the Courts for income tax and other indirect tax matters. For tax practitioners, the significant case law decisions to be aware of include the following:
1. An interpretation of the application of section 100A to trust structures with distributions of net income to corporate beneficiaries. Has the question of ‘Ordinary and Commercial dealings’ been answered? (Guardian AIT Pty Ltd ATF Australian Investment Trust v Commissioner of Taxation).
2. The capital/revenue distinction is tested once again with regard to employee benefits and the prepayment of rent (Mussalli & Ors v FC of T), Clough Ltd v FC of T (No 2).
3. What are the indirect FBT ramifications for employers that arise from the decision on car parking in FC of T v Virgin Australia Regional Airlines Pty Ltd & Anor. Is there any relevance to small business FBT concessions?
4. The application of capital gains to non-resident beneficiaries where distributions of capital gains are made by a discretionary trust of from assets that are not taxable Australia Property. The question arises whether the use of a discretionary trust is the optimal structure for non-residents who may be in receipt of such distributions ( Peter Greensill Family Co Pty Ltd (as trustee) v FC of T; Nicholas Martin & Anor v FC of T).
Join us for this webinar where we discuss the foregoing cases and other important tax cases that arose in 2021.
Recorded on Friday25 February 2022
Presented by: Phillip London
1 CPD Hour