LAW – AUSTRALIA – CASES

Steep fine for 7-Eleven boss over pay rort

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Original article by Sarah Danckert
The Age – Page: 11 : 25-Jul-17

A former Brisbane-based 7-Eleven franchisee has been fined $A168,000 by the Federal Court, following an investigation by the Fair Work Ombudsman into wage underpayment. Jim Chien-Ching Chang was found to have underpaid eight employees by almost $A20,000, with one employee found to have been underpaid by almost $A14,000. The court heard that Chang had admitted to paying staff as little as $A13 an hour at all times of the day.

CORPORATES
7-ELEVEN STORES PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. FAIR WORK OMBUDSMAN, JS TOP PTY LTD

Historic native title ruling: Fortescue up for ‘astronomical’ sum

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Original article by Andrew Burrell
The Australian – Page: 1 & 6 : 21-Jul-17

Fortescue Metals­ Group has advised that a native title ruling is unlikely to affect production at its Solomon iron ore mine in Western Australia’s Pilbara region. The Federal Court has ruled that the Yindjibarndi people are entitled to exclusive native title rights over a large area of land in the state, including the site of the Solomon mine. The Yindjibarndi could potentially be entitled to compensation of around $A100m for royalties from the mine. Fortescue shares closed 3.5 per cent lower at $A5.19 in response to the judgment.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, FEDERAL COURT OF AUSTRALIA, WIRLU-MURRA YINDJIBARNDI ABORIGINAL CORPORATION, RIO TINTO LIMITED – ASX RIO

Tatts takeover at risk of delay, says Tabcorp

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Original article by Sarah-Jane Tasker
The Australian – Page: 19 : 12-Jul-17

Tabcorp has advised shareholders that a court challenge should not affect its timetable to complete an $A11bn merger with Tatts Group. The wagering giant still expects the deal to be completed during the December 2017 quarter, despite a move by the Australian Competition & Consumer Commission to seek a judicial review of the Competition Tribunal’s decision to approve the merger. Tabcorp has indicated that it will push for an expedited hearing of the ACCC’s application to the Federal Court.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. COMPETITION TRIBUNAL, FEDERAL COURT OF AUSTRALIA, DEUTSCHE BANK AG, ORD MINNETT GROUP LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, PACIFIC CONSORTIUM

ACCC appeals Tabcorp-Tatts merger ruling

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Original article by Ben Butler
The Australian – Page: 17 & 20 : 11-Jul-17

The Australian Competition & Consumer Commission will challenge the Competition Tribunal’s decision to approve the $A11bn merger between Tabcorp and Tatts Group. The ACCC has argued in the Federal Court that the tribunal made three legal errors in approving the deal. Amongst other things, it claims that the tribunal only considered whether the merger would be detrimental if it resulted in a "substantial" lessening of competition. The ACCC is of the view that the tribunal should have considered whether there would be any lessening of competition.

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, TATTS GROUP LIMITED – ASX TTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. COMPETITION TRIBUNAL, FEDERAL COURT OF AUSTRALIA, PACIFIC BRANDS LIMITED

‘I wouldn’t apologise for 50k,’ Harrison warns Seven

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Original article by Misa Han
The Australian Financial Review – Page: 2 : 10-Jul-17

Seven West Media is believed to have incurred legal costs of more than $A1m in its dispute with former employee Amber Harrison. Seven will seek to recover its full legal costs after insisting that Harrison must issue a public apology as part of a deal to settle the case. Harrison had offered to abandon legal action against Seven and accept a permanent suppression order, but with no apology or payment from Seven. The media group had offered to pay her $A50,000 to settle the dispute.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, JOHNSON WINTER AND SLATTERY, AUSTRALIAN HUMAN RIGHTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Chevron tax ruling to ‘hit investment’

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Original article by Matt Chambers
The Australian – Page: 22 : 3-May-17

Chevron’s chief financial officer, Patricia Yarrington, has told investors in the US that the oil and gas group may appeal a Federal Court of Australia ruling on the tax status of a $A2.5bn inter-company loan. She warned that the ruling will have implications for international transfer pricing guidelines, while it is likely to impact on future investment in Australia. However, Chevron’s Stephen Green has welcomed the findings of a review which recommended that any changes to the Petroleum Resource Rent Tax should not be retrospective.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN TAXATION OFFICE

Energy giants to be grilled over tax minimisation tactic

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Original article by Ben Butler
The Australian – Page: 17 & 20 : 26-Apr-17

Executive from major oil and gas producers will appear before the Senate economics reference committee on 28 April 2017. They include executives from Chevron, which recently lost a transfer pricing dispute with the Australian Taxation Office regarding a $A2.5bn inter-company loan. The case centered on the interest rate on the loan made by US-based Chevron to its Australian subsidiary, which is expected to prompt the ATO to issue new guidelines regarding interest rates for such loans.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, EXXONMOBIL CORPORATION, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, BP PLC, ROYAL DUTCH SHELL PLC, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, TAX JUSTICE NETWORK, GETUP LIMITED, MINTER ELLISON, FEDERAL COURT OF AUSTRALIA, HIGH COURT OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, CLAYTON UTZ

$500k in fines for ‘arrogant’ CFMEU

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Original article by Simone Fox Koob
The Australian – Page: 2 : 12-Apr-17

The Construction, Forestry, Mining & Energy Union has been ordered to pay a $A490,000 fine over unlawful industrial action in 2014. The Federal Court has also imposed fines of between $A6,400 and $A22,400 on 10 CFMEU officials for their involvement in the industrial action against Kane Constructions. The strike action, which disrupted 10 construction projects in Victoria, was prompted by Kane’s move to enforce union right-of-entry laws. The judgment has been welcomed by Employment Minister Michaelia Cash.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, KANE CONSTRUCTIONS PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, AUSTRALIAN MANUFACTURING WORKERS’ UNION, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, SIR OWEN DIXON CHAMBERS, BMC WELDING AND CONSTRUCTION, JOHN BEEVER PTY LTD, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

Westpac subsidiary taken to court on super advice

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Original article by Lucy Battersby
The Age – Page: 19 : 23-Dec-16

The Australian Securities & Investments Commission has launched legal action against Westpac Securities Administration Limited (WSAL) and BT Funds Management (BTFM). ASIC alleges in documents filed with the Federal Court’s New South Wales registry on 21 December 2016 that WSAL and BTFM breached the "best interests duty" regulations on 15 occasions during a sales campaign promoting superannuation products.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WESTPAC SECURITISIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

CFMEU to pay official’s fine after court rescinds order

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Original article by Ewin Hannan
The Australian – Page: 4 : 22-Dec-16

The Construction, Forestry, Mining & Energy Union will be able to use its own funds to pay an $A18,000 fine on behalf of union official Joe Myles after a May 2016 court ruling was overturned. The full bench of the Federal Court has ruled in favour of the CFMEU, with Chief Justice James Allsop finding that the Fair Work Act did not permit him to ban the militant union from paying Myles’ fines for breaching workplace laws. However, he ruled that the fines themselves were appropriate.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BORAL LIMITED – ASX BLD