tax
December 11, 2018
Only partial foreign tax offset for US capital gains
A single judge of the Federal Court has agreed with the Commissioner that a taxpayer was only entitled to a 50% foreign income tax offset (FITO) for US tax paid on the sale of investments: Burton v FCT [2018] FCA 1857. An Australian resident taxpayer sold investment assets located in the US. The whole of…
August 8, 2017
Transfer pricing: interest rate on borrowing not arm’s length
In a major transfer pricing judgment (“the Chevron Case”), the Full Federal Court has unanimously dismissed Chevron Australia’s appeal, finding that its loan arrangement with its related US company, Chevron Texaco Funding Corporation, was not at arm’s length and the Commissioner was justified in denying Chevron Australia’s interest deduction claims. At the crux of the…
September 12, 2016
Property developer entitled to capital gain tax concession
A taxpayer has been successful before the AAT in arguing that a commercial property it acquired and developed and later sold for a profit of some $40 million had been acquired as a capital asset to generate rental income, and not for the purpose of resale at a profit – despite the fact that the AAT…
