Whiddon and Commissioner of Taxation (Taxation) [2022] AATA 197

TAXATION – INCOME TAX – whether gain on complex share exchange transaction revenue or capital in nature – where applicant conceded the transaction was a commercial transaction – whether applicant had not insignificant purpose of obtaining profit notwithstanding that the shares received were to be held for an extended period – held gain is income according to ordinary concepts – whether applicant a resident of Australia – where applicant handed back key to Monaco residence, returned to Australia but departed again for a temporary period ending after relevant time – held applicant a resident – decision affirmed

TAXATION – ADMINISTRATIVE PENALTY – whether applicant exercised reasonable care – where Commissioner initially adopted same position as applicant regarding whether the transaction was on revenue account – where there was little evidence regarding the conduct leading to the shortfall in the return - whether appropriate to remit penalty – decision affirmed

Full decision here