The ATO on Thur 22.8.2013, released a Decision Impact Statement on the Full Federal Court’s decision in FCT v McWilliam [2012] FCAFC 105. In that case, the Full Federal Court dismissed the Commissioner’s appeal against an earlier AAT decision in AAT Case [2012] AATA 142 that had held the taxpayer had applied the correct acquisition date in relation to share options and was therefore not subject to shortfall penalties that had been imposed.
The ATO said the decision of the Full Court was based on the findings of fact made by the Tribunal. It said the Full Court’s conclusion that if the taxpayer did not acquire the options on 1 July 2003, he nevertheless obtained a contractual right to obtain the options to the shares in the company and that was a right for the purposes of Div 13A, appears predicated on a conclusion that the right to the options was unconditional and not subject to a future event. However, the ATO noted that Div 13A has been repealed so the case has little ongoing significance.
[LTN 162, 22/8/13]