ATO Scales
Tax & Accounting25/02/2020 12:00:00 AM

ATO win/loss records

Joanne Dunne, PwC Partner, did a survey of 2019 tax cases for The Tax Institute’s 2020 Financial Services Taxation Conference in Melbourne. The ATO scored a 66% win/loss score out of the 2019 tax cases in High Court, Full Federal Court and Federal Court –the lowest score since the year 2012. Interesting cases of note include:

  • the ATO’s loss in Glencore Investment 2019 ATC ¶20-710, 2019 FCA 1432, the transfer pricing case that considers Subdiv 815-A (and not Subdiv 815-B, which gives the Commissioner broader reconstruction powers)
  • the Full Federal Court decision in Burton 2019 ATC ¶20-709, [2019] FCAFC 141, which confirmed that there was no double taxation where an Australian resident made gains from investments in the US, but the taxpayer was not entitled to a foreign income tax offset (FITO) against his tax liability in Australia on the gains to the extent of half of the US tax paid. The High Court has since dismissed the taxpayer’s application for special leave to appeal against the full court decision, and
  • the Federal Court decision in Jordan v Second Commissioner of Taxation 2019 ATC ¶20-712, [2019] FCA 1602, whichheld that protected information the ATO held relating to the affairs of a taxpayer may be disclosed by a taxation officer for the purpose of the defamation proceedings the taxpayer commenced against the Commissioner.