Sunraysia Harvesting Contractors Pty Ltd (Trustee) v Commissioner of Taxation [2017] FCA 694

FEDERAL COURT OF AUSTRALIA

Sunraysia Harvesting Contractors Pty Ltd (Trustee) v Commissioner of Taxation [2017] FCA 694 Appeal from: Sunraysia Harvesting Contractors Pty Ltd as trustee of the Sunraysia Harvesting Contractors Trust and Commissioner of Taxation (Taxation) [2015] AATA 764

File number: QUD 64 of 2016

Judge: LOGAN J

Date of judgment: 20 June 2017

Catchwords: TAXATION – income tax – assessable income – amended assessments – goods and services tax – taxable supplies and creditable acquisitions – transactions claimed by Commissioner to be "sham" – whether corporate taxpayer entered into a sham arrangement in respect of labour hire –whether interposed subcontracting companies genuine and real – arrangements never intended to create legally enforceable obligation – companies not making supply for consideration or carrying on enterprise – no allowable deduction for payments by corporate taxpayer to purported subcontractors - no onus on Commissioner to prove that arrangement a sham – whether taxpayers discharged onus of proving that arrangement was not a sham – failure to show assessments excessive – objection decisions affirmed ADMINISTRATIVE LAW – Administrative Appeals Tribunal – appeal – scope – appeal raising question of fact– appeal dismissed EVIDENCE – burden of proof – party's failure to call evidence of tax adviser involved in alleged sham arrangements

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1936 (Cth) s 260 Income Tax Assessment Act 1997 (Cth) s 8-1 Taxation Administration Act 1953 (Cth) ss 12-35, 12-60, 14ZZK, 14ZZO, 16-30