Sent v Commissioner of Taxation [2012] FCA 382

FEDERAL COURT OF AUSTRALIA

Sent v Commissioner of Taxation [2012] FCA 382 Citation: Sent v Commissioner of Taxation [2012] FCA 382

Appeal from: Administrative Appeals Tribunal

Parties: EDUARD SENT v COMMISSIONER OF TAXATION

File numbers: VID 310 of 2011 VID 313 of 2011

Judge: MURPHY J

Date of judgment: 16 April 2012

Catchwords: INCOME TAX - Employee incentive share trust plan — Whether payment to trust had character of ordinary income – Whether payment in substitution for bonuses from employment is ordinary income – Whether when part of amount deemed to be ordinary income assessable to the respondent but the remaining part is not — Whether respondent obtained a benefit or gain — Whether amount of ordinary income "derived" – When amount is applied or dealt with by a taxpayer - Whether exemptions applied to treat amount as a fringe benefit - PENALTIES and OFFENCES — Recklessness - Failure by taxpayer to discharge onus regarding recklessness of tax agent – Failure to adopt a reasonably arguable position ADMINISTRATIVE LAW — Whether error of law by the Administrative Appeals Tribunal —– Statutory requirement to provide reasons – Whether inadequacy of reasons an error of law – Whether appropriate to set aside decision for failure to provide adequate reasons - Whether facts as found are capable of supporting the decision

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) Fringe Benefits Tax Assessment Act 1986 (Cth) Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) Tax Administration Act 1953 (Cth)