Case News: Greensill Appeal
21 August 2020
The decision in Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation (No 2) has been appealed to the Full Federal Court, in an attempt to overturn Justice Logan's decision in first instance that a non-resident beneficiary was taxable on the capital gains made by the trustee of an Australian discretionary trust - on assets which were not Taxable Australian Property.
The taxpayer in Peter Greensill Family Co Pty Ltd (trustee) v Commissioner of Taxation (No 2) has appealed to the Full Federal Court, in relation to a case in which a non-resident beneficiary of an Australian trust was found to be taxable on capital gains made on CGT assets, which were not considered taxable Australian property.
Justice Logan found at first instance that the taxpayers argument could not be sustained and the provisions of 855-40 did not apply to permit a CGT exemption where a CGT event arose on a CGT assets owned by the trustee of an Australian resident discretionary trust.
If the taxpayer is successful on appeal, it would be almost certain that the ATO would apply for special leave to the High Court to have the matter fully tested.