Published on 01 May 06
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Raftland Pty Ltd v FC of T  FCA 109.
The Federal Court has affirmed the Commissioner of Taxation’s (“Commissioner”) amended assessments totalling $4.205 million after finding that a taxpayer’s purported distributions of income to a unit trust with accumulated tax losses were a sham. The Court also held that the trust stripping provisions of s 100A of the Income Tax Assessment Act 1936 (“ITAA36”) applied. As a result, the income that was deemed not to have been distributed was assessable to the trustee under s 99A.
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