Pilmora Pty Ltd as Trustee of the Townsing Family Trust and Commissioner of Taxation (Taxation)

[2015] AATA 976

Pilmora Pty Ltd as Trustee of the Townsing Family Trust and Commissioner of Taxation (Taxation) [2015] AATA 976 (17 December 2015)

 

Division	TAXATION & COMMERCIAL DIVISION
File Numbers	2013/6548-6552
Re	Pilmora Pty Ltd as Trustee of the Townsing Family Trust
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Numbers	2013/6560-6562
Re	Normandy Finance and Investments Asia Pty Ltd
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Numbers	2013/6563-6571
Re	Henry Townsing
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Numbers	2013/6572-6580
Re	Gaynor Townsing
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Number	2013/6581
Re	Henry Townsing Jnr
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Number	2013/6582
Re	Edward Townsing
APPLICANT
And	Commissioner of Taxation
RESPONDENT

File Number(s)	2014/3353-3354
Re	Advant Pty Ltd
APPLICANT
And	Commissioner of Taxation
RESPONDENT

DECISION

Tribunal	Justice Edmonds
Date	17 December 2015
Place	Sydney

1.        The applications of the applicants in 2013/6548–6552; 2013/6560–6562; 2013/6563–6571 and 2014/3353 and 2014/3354 are dismissed.          

2.        The objection decisions of the Commissioner in respect of the objections of the applicant in 2013/6572–6580 for the years ended 30 June 2001 to 2009 are set aside.

3.        The objection decisions of the Commissioner in respect of the objections of the applicants in 2013/6581 and 2013/6582 for the year ended 30 June 2001 are set aside.

4.        The matters in 2 and 3 be remitted to the Commissioner to raise assessments of income tax, if any, for the respective years of income referred to therein in accordance with the reasons for decision and to raise assessments of penalty tax, if any, consistent with those primary tax assessments.  Otherwise the applications for further remission are dismissed.

......[sgd].....................................................

Justice Edmonds

REASONS FOR DECISION

Justice Edmonds

17 December 2015

1. These reasons should be read in conjunction with the reasons for judgment in Normandy Finance Pty Ltd v Commissioner of Taxation [2015] FCA 1420 (Normandy Finance and Investments Asia Pty Ltd and Advant Pty Ltd v Commissioner of Taxation VID 1336 of 2013 and Pilmora Pty Ltd ATF The Townsing Family Trust and Henry George Townsing v Commissioner of Taxation VID 1337 of 2013) (“Federal Court proceedings”), which was published today.

2. In the case of all applicants in the Federal Court proceedings, the references to this Tribunal are confined to review of the Commissioner’s decisions not to remit penalties and shortfall interest charges imposed at the time of the assessments of income tax and penalty tax.  In the face of the findings in the Federal Court proceedings, a number of the assessments of income tax and penalty tax will be reduced, however, there should be no further remissions of penalty tax or shortfall interest charges so reduced.  Either the applicants have no standing to seek such remissions, or they have not established the grounds upon which their applications for remission are made.  The applications of the applicants for any such further remissions so reduced should be dismissed.

3. In the cases of the applicants in 2013/6572–6580 and 2013/6581 and 2013/6582, they seek review of their assessments of income tax – 2013/6572–6580 (2001 to 2009); 2013/6581 (2001) and 2013/6582 (2001) – on the same basis as Henry Townsing sought for the years ended 30 June 2000 to 2009 inclusive.  For the same reasons there indicated, in particular at [141] to [144] inclusive, the Commissioner’s objection decisions are set aside and their objections allowed to the extent there indicated.

4. The reference to the Tribunal for further remission of penalty tax so reduced on the part of the applicants in [3] above should be dismissed on the same grounds given in [2] above for the applicants in the Federal Court proceedings.

I certify that the preceding 4 (four) paragraphs are a true copy of the reasons for the decision herein of Justice Edmonds

............[sgd]............................................................

Associate

Dated  17 December 2015

Date(s) of hearing	1-5 June, 10-12 June, 15-19 June, 24 June, 8-9 July 2015
Counsel for the Applicant	Mr J Hyde Page, Mr J Willis, Mr T Bagley
Solicitors for the Applicant	Mr M J Ord
Counsel for the Respondent	Mr D McGovern SC, Dr J Jaques, Ms J Gatland
Solicitors for the Respondent	Australian Government Solicitor