VIRGIN AIRLINES: The Commissioner has filed a notice of appeal to the Full Federal Court against the decision of Griffiths J in Virgin Australia Airlines Pty Ltd v FCT [2021] FCA 523. The Federal Court had held that Virgin Airlines did not provide car parking fringe benefits to its flight and cabin crew at Sydney, Brisbane or Perth airports.
MUSSALLI CASE: The taxpayers have lodged an application for special leave to appeal to the High Courtfrom the Full Federal Court’s decision in Mussalli v FCT [2021] FCAFC 71. In unanimously dismissing the taxpayers’ appeals, the Full Federal Court upheld a decision (in Mussalli v FCT [2020] FCA 544) that upfront payments to secure a rent reduction under long-term leases were on capital account and not deductible under s 8-1. This was a MacDonalds fast food franchisee. See related TT article.
[LTN 115, 18/6/21]