Date posted: 30/06/2025

Tax appeals updates

List of recent Appeals updates that have been reported in CA ANZ Tax News AU

Appeals for 2025 

Commissioner of Taxation v Bendel [2025] FCAFC 15

The High Court has granted the Commissioner special leave to appeal the Full Federal Court decision of the Commissioner of Taxation v Bendel [2025] FCAFC 15. In this case the Full Federal Court concluded that an unpaid present entitlement to a corporate beneficiary was not a loan under Division 7A of ITAA 1936.

The Commissioner’s position, as expressed in Interim Decision Impact Statement, is that “Pending the outcome of the appeal process, we are administering the law in accordance with the published views relating to private company entitlements and trust income in TD 2022/11.”

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Commissioner of Taxation v Liang [2025] FCAFC 4

The High Court has refused special leave to the taxpayer in Commissioner of Taxation v Liang [2025] FCAFC 4. The Full Federal Court held that the taxpayers failed to establish the source of their unexplained deposits that the Commissioner subsequently assessed as ordinary income. Therefore the taxpayers had not discharged their burden of proving the amended assessments were excessive.

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Aitken v Commissioner of Taxation [2025] FCA 372

The taxpayer has filed a Notice of appeal against the Federal Court decision in Aitken v Commissioner of Taxation [2025] FCA 372 where the Commissioner’s valuation to ascertain assessable income under Division 394 accepted.

Morton v Commissioner of Taxation [2025] FCA 336

The Commissioner has filed a Notice of appeal against the Federal Court decision in Morton v Commissioner of Taxation [2025] FCA 336. In this case, the Federal Court held that the taxpayer did not engage in a business of developing land or a profit-making scheme.

AusNet Services Limited v FCT [2025] FCAFC 21

The taxpayer has lodged an application for special leave to appeal to the High Court against the Full Federal Court decision in AusNet Services Limited v FCT [2025] FCAFC 21 regarding a decision that Div 615 of the ITAA 1997, which provides rollover relief for transactions under a scheme to restructure a company's or unit trust's business, applied to a scheme restructuring a stapled group.

ART decision in Shaw and FCT [2025] ARTA 224

The Commissioner has lodged a notice of appeal to the Federal Court against the ART decision in Shaw and FCT [2025] ARTA 224 regarding whether a long-haul truck driver needs to substantiate the claim for meal expenses.

Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation [2025] FCA 115 

The taxpayer has lodged an appeal to the Full Federal Court against the decision in Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation [2025] FCA 115. In this case, the taxpayer claimed substantial losses, from holding a financial arrangement, for a deduction under Division 230 of the Income Tax Assessment Act 1997. The taxpayer held a gaming operator’s licence which it claimed was a financial arrangement. The Federal Court found the arrangement in relation to the gaming operator's licence was not a financial arrangement.

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Toowoomba Regional Council v Commissioner of Taxation [2025] FCA 161

The Commissioner has lodged an appeal to the Full Federal Court against the decision in Toowoomba Regional Council v Commissioner of Taxation [2025] FCA 161. In this case, the Court held that a particular shopping centre car park was not a “commercial parking station”.

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PepsiCo Inc and Anor v Commissioner of Taxation [2024] FCAFC 86

The Commissioner has been granted special leave by the High Court to appeal against the Full Federal Court decision in PepsiCo Inc and Anor v Commissioner of Taxation [2024] FCAFC 86. In this instance, the Full Federal Court determined that the taxpayers did not have a royalty withholding tax liability and that the diverted profits tax (DPT) was not applicable. 

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Youssef v Commissioner of Taxation (Appeal) [2024] FCA 1154

The taxpayers have appealed to the Full Court after their case was dismissed in Youssef v Commissioner of Taxation (Appeal) [2024] FCA 1154. The Federal Court decision upheld the Tribunal’s earlier decision that the taxpayer failed to prove that unexplained deposits were not assessable income. 

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Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation [2024] FCAFC 29

The High Court has refused the taxpayer’s application for special leave to appeal the decision of the Full Federal Court in Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation [2024] FCAFC 29. In that decision, the Full Federal Court dismissed the taxpayer’s appeal, disallowing interest deductions pursuant to the transfer pricing rules.

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Automotive Invest Pty Limited v Commissioner of Taxation [2023] FCAFC 129

The High Court has granted the taxpayer special leave to appeal the Full Federal Court decision of Automotive Invest Pty Limited v Commissioner of Taxation [2023] FCAFC 129. In this decision, the Court upheld the primary judge’s decision that the cars on display in a car museum that were for sale were held as exhibits as well as trading stock. Therefore, the taxpayer was liable to pay luxury car tax and its input tax credits were limited to 1/11th of the car limit.

If the taxpayer was considered using the car only for the purpose of holding it as trading stock then it would not have an increasing luxury car tax adjustment under the sections 15-30 and 15-35 of the A New Tax System - Luxury Car Tax Act 1999. Similarly, if the taxpayer was considered using the car only for the purpose of holding it as trading stock then the input tax credits wouldn’t be limited to 1/11th of the “car limit” under section 69-10 of the A New Tax System - Goods and Services Tax Act 1999.

Hedges v Commissioner of Taxation [2023] FCAFC 105

The High Court has dismissed the taxpayer’s application for leave to appeal the decision in Hedges v Commissioner of Taxation [2023] FCAFC 105. In this decision, the Full Federal Court held that the taxpayer was entitled to receive the capital proceeds for the disposal of interest in the goodwill of a partnership pursuant to the Partnership Deed and thus was assessable on the discount capital gain without set-off for the taxpayer’s debt due on the capital account. 

Hedges v Commissioner of Taxation [2022] FCA 1389

The taxpayer has filed a notice of appeal to the Federal Court against the decision of Hedges v Commissioner of Taxation [2022] FCA 1389. In this decision, the Federal Court upheld the Tribunal’s decision that a capital gain arising from the disposal of goodwill by the partner in a law firm partnership, could not be offset by amounts owed to the partnership. The decision is reported under ‘Tax cases’. 

T.D.S BIZ PTY LTD and Commissioner of Taxation

The taxpayer has filed a notice of appeal to the Federal Court against the decision of the Tribunal in T.D.S BIZ PTY LTD and Commissioner of Taxation [2022] AATA 3543. In that case, the Tribunal rejected the taxpayer’s R&D tax incentive claim as a "finding" covering activities conducted overseas was not in force. 

Appears in Tax News AU: Edition 44

Peter Greensill Family Co Pty Ltd (Trustee) v Commissioner of Taxation

The High Court has refused the applicants, Peter Greensill Family Co Pty Ltd as Trustee for the Peter Greensill Family Trust, Martin and N & M Martin Holdings Pty Ltd ATF Martin Family Trust, special leave to appeal the Full Federal Court’s decision in Peter Greensill Family Co Pty Ltd (Trustee) v Commissioner of Taxation [2021] FCAFC 99. In that decision, the Full Federal Court reaffirmed that a non-resident beneficiary of an Australian resident discretionary trust is taxable in Australia on the capital gain attributable to assets that are not taxable Australian property.

Appears in Tax News AU: Edition 10

Commissioner of Taxation v Burswood Nominees Limited as trustee for the Burswood Property Trust [2021] FCAFC 151

The High Court has refused the taxpayer’s special leave application to appeal the decision in Commissioner of Taxation v Burswood Nominees Limited as trustee for the Burswood Property Trust [2021] FCAFC 151. 

In relation to the total amount payable at the end of a junket (which is a net amount taking into account winnings, losses, commissions and rebates) by the junket tour operator to the casino or by the casino to the junket tour operator, the Court found it was inconsistent with the scheme of Division 126, and with the terms of the relevant expressions, to treat this amount as constituting or forming part of the “total amount wagered” (if payable by the junket tour operator to the casino) or the “total monetary prizes” (if payable by the casino to the junket tour operator).

Read Commissioner of Taxation v Burswood Nominees Limited

Appears in Tax News AU: Edition 17