The taxpayer has appealed to the Full Federal Court against the decision of Edmonds J in Blank v FCT (No 2) [2014] FCA 517. The Federal Court had dismissed the taxpayer’s application to re-open his case after the Court at first instance in Blank v FCT [2014] FCA 87 held that a payment of USid=”mce_marker”60m made to him following his termination from his employment was assessable as “ordinary income” in his hands. The Court arrived at this decision on the basis that the payment was “deferred compensation for services rendered” arising from negotiating a settlement in relation to his right to participate in his employer company’s “profit participation plan”.
[LTN 115, 18/6/14]