16 Nov 1212 Capital gain on sale of foreign shares - Daniels
The AAT has found that a taxpayer was correctly assessed on a net capital gain derived from the sale of shares in a Panama company.
The inclusion of the capital gain resulted from an audit of the tax affairs of the taxpayer and associated entities. Via affidavit evidence and in the course of an examination conducted by officers of the ATO under s 264 of the ITAA 1936, the taxpayer maintained that he was unsure whether he had been a shareholder of the Panama company, and that a payment he had received from the company was the result of a damages settlement.
The hearing before the AAT proceeded in the taxpayer’s absence, he having failed to appear.
On the information and material available to it, the AAT held that the Commissioner was correct in determining that the taxpayer was assessable on a net capital gain made on the disposal of shares held in the Panama company during the relevant tax year. The taxpayer had failed to discharge his burden of proving that the amended assessment was excessive.
Further, based upon the documents and other evidence available, the amount included by the Commissioner in the taxpayer’s assessable income under s 167 of the ITAA 1936 in the relevant tax year was not excessive.
No remission of penalty was warranted.
Re Daniels and FCT  AATA 792 (Senior Member R W Dunne, 14 November 2012).