FCT v Boyn – DIS on Federal Court’s decision that deductions and prior year losses didn’t have to be allocated in the Taxpayer’s favour [47]

The ATO today [Mon 29.4.2013] issued a Decision Impact Statement on the decision of the Federal Court in FCT v Boyn [2013] FCA 232. In that case, the Federal Court allowed the Commissioner’s appeal and ruled that the Commissioner was not required to allocate deductions and prior year losses in the manner most favourable to the taxpayer when calculating the tax payable on an ETP with an employment termination remainder.

The ATO broadly said the Federal Court confirmed its interpretation of the definition of employment termination remainder and ordinary taxable income. It said the Court also confirmed its method of calculating the tax payable for an income year where the taxable component of an ETP exceeds the ETP cap amount, and the taxable component is greater than the taxable income for the year.

[LTN 79, 29/4/13]