Tax & ATO News Australia
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High Court Case helps determine questions of facts vs. questions of law in AAT hearings
The ATO has recently released a decision impact statement on a High Court tax case that SMH Tax Lawyers won last year, Commissioner of Taxation v Crown Insurance Limited.
Posted in: Tax & ATO News Australia at 24 January 14
Crown Insurance Services Limited wins in High Court against ATO
A long running fight between one of my clients and the ATO has had its final battle in the High Court on 6 June 2013.
Posted in: Tax & ATO News Australia at 07 June 13
ATO loses 3 major cases in 2011
Despite propaganda from the Acting Commissioner of Taxation to the contrary, the Australian Taxation Office copped a battering in a number of cases towards the end of 2011.
The ATO lost in three major tax cases last year – Commissioner of Taxation v Clark[2011] HCATrans 236and The Commissioner of Taxation of the Commonwealth of Australia v Multiflex Pty Ltd[2011] HCATrans 344,which both went to the High Court - and Crown Insurance Services Limited and Commissioner of Taxation[2011] AATA 847, which SMH Tax Lawyers ran on behalf of an offshore insurance company.
All three cases involved the ATO following very narrow, technical arguments and subsequently losing.
In Clark, the ATO tried to overturn a 1990 High Court decision in relation to whether changes to a trust create a new trust estate. In Crown Insurance, the ATO went even further and tried to overturn a 1932 High Court decision.
The ATO’s strange interpretation of its model litigant obligations was obvious in the Multiflex case. Multiflex was one of a number of large businesses where the ATO was refusing to refund the Goods and Services Tax owing to the taxpayer, notwithstanding, that this was money the ATO was required by legislation to refund – no different to an income tax refund.
While the ATO was deciding whether to challenge the GST refund, it felt that the money was better in the government’s coffers, rather than with the taxpayers. At each level of appeal, the Courts held that the ATO was wrong and had to repay the money, but it was not until a hearing before the High Court of Australia, that the ATO finally conceded it had to pay the money back. The financial distress which was caused to the taxpayers in the meantime was, no doubt, considerable.
Unfortunately, the ATO has a history of using litigation in tax disputes to try and force an outcome. Although the ATO has unlimited resources and the onus of proof on its side, occasionally taxpayers are prepared to fight for their rights through the courts.
An article in this Saturday’s edition of The Australian newspaper will feature one such taxpayer, who is a client of ours. Check it out if you get a chance.
Posted in: Tax & ATO News Australia at 13 January 12
Hi Ben,
The 1938 High Court decision (not 1932, sorry) referred to is Tariff Reinsurance Limited v Commissioner of Taxes (Vic) (1938) 59 CLR 194.
Feel free to email me directly to discuss further. Where are you studying?
Kind regards
David Hughes
Comment by David Hughes lodged 05 March 12
I'm doing a tax law case analysis on the Crown case for university and was wondering which case you were referring to when you say: "In Crown Insurance, the ATO went even further and tried to overturn a 1932 High Court decision."
I look forward to hearing from you shortly and would appreciate any wisdom you could impart regarding this case.
Thank you very much for your time.
Regards,
Ben Singleton
Comment by Ben Singleton lodged 26 April 12
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