The ATO on Tue 10.12.2013, released Decision Impact Statements on the following:

  • Sea Shepherd Australia Ltd v FCT & Anor [2013] FCAFC 68 – In that case, the Full Federal Court affirmed the Commissioner’s decision that Sea Shepherd Australia was not entitled to be endorsed as a deductible gift recipient. The taxpayer’s application for special leave to the High Court was subsequently refused. Broadly, in the Decision Impact Statement, the ATO said it respectfully accepts the Full Court’s finding that the taxpayer raised a question of law to found its appeal under s 44 of the AAT Act 1975. It said the Court’s construction of the phrase “short-term direct care” was consistent with its submissions.
  • VN Railway Pty Ltd & Anor v FCT [2013] FCA 265 – In that case, Federal Court upheld the Commissioner’s decision to disallow deductions in relation to superannuation payments for family members of the trust because it considered they were not “employees” for the purposes of former s 82AAC of the ITAA 1936. An appeal lodged by the taxpayer to the Full Federal Court was discontinued prior to hearing. The ATO said in the Decision Impact Statement that it considers the Court’s decision confirms the term “employee” in ss 82AAA and 82AAC of the ITAA 1936 is used in the common law sense of a person who is party to a contract of service.

[LTN 239, 10/12/13]


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