Mussalli v CofT – Upfront payments to secure rent reduction payable for MacDonalds restaurants held not deductible (on capital account)
On 28 April 2020, the Federal Court held that Upfront payments to secure a rent reduction under long term leases were on capital account and not deductible under s 8-1 of the ITAA97. See below for a summary of the case. [Tax Month – April 2020]