KKQY and Commissioner of Taxation (Taxation) [2019] AATA 204

Taxation – income tax – Division 7A of Part 3 of the Income Tax Assessment Act 1936 - loan by company to a shareholder – loan not repaid – deemed dividend for repayment shortfall – consideration of whether earlier loan was varied or terminated – deductibility of legal fees – whether legal fees of a capital nature or on account of revenue – liability to penalty under s 284-74 of the Taxation Administration Act 1953 – recklessness – whether to remit penalty under s 298-20 of the Taxation Administration Act 1953 – decision under review affirmed

Full decision here