Further Government explanation of streaming and anti-avoidance rule for franking credits - The Government has released a Supplementary Explanatory Memorandum to Taxation Laws Amendment Bill (No 3) 1998 which provides further guidance on the operation of the anti-streaming measures and general anti-avoidance rule targeting franking credit trading.
The High Court has refused special leave to appeal in Woodhams v DFC of T, National Australia Bank Ltd v FC of T, and The Roy Morgan Research Centre Pty Ltd v Commr of State Revenue (Vic). Applications have been lodged with the High Court for special leave to appeal against the Full Federal Court's decisions in FC of T v Prestige Motors Pty Ltd and FC of T v Ryan. Appeals have been lodged with the Full Federal Court against the following Federal Court decisions: Pacific Dunlop Ltd v FC of T and Gross v FC of T.
Profits from developing land assessable - The Federal Court has held that the profit derived from the sale of townhouses was assessable income under s25(1) as the taxpayers' predominant objective was to make a profit. The three most important factors were: most of the money to fund the project was borrowed; the taxpayers tried to sell the townhouses shortly before they were completed and put them back on the market just 12 months later; and no step was taken to find tenants for the townhouses (McCurry & Anor v FC of T).
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