The ATO on Mon 28.7.2014, issued a Decision Impact Statement on the Full Federal Court’s decision in Kelly v FCT [2013] FCAFC 88. The case concerned whether certain interests in a partnership had been effectively and validly assigned to certain trustees, and whether a superannuation contribution for the directors of a corporate trustee was an allowable deduction.
- In relation to the assignment of interest in the partnership, the ATO said it respectfully accepts the Full Federal Court’s view that it was open to the Federal Court to find that the taxpayer had assigned a portion of his partnership interest in the 2005 income year.
- In relation to the superannuation deduction, the ATO noted that the Full Court’s decision was consistent with the Commissioner’s view in para 243 of Taxation Ruling TR 2010/1 that a superannuation contribution for the director of a corporate trustee can only be deducted from the income of the trust if the director is a common law employee of the trust engaged in producing the assessable income of the trust or its business.
[LTN 143, 28/7/14]