The taxpayer has appealed to the Full Federal Court against the decision of Collier J in Nelson v FCT [2014] FCA 57. The Federal Court had dismissed a taxpayer’s appeal from the decision in AAT Case [2012] AATA 579, Re Nelson and FCT in which the AAT confirmed the taxpayer was not carrying on a business of primary production during the 2004 to 2009 years of income on a 500 acre property in Queensland he purchased and that therefore he was not entitled to deductions in respect of improvements he made to the property and other expenses he incurred, including the depreciation of assets.

[FJM note:     this was the case where the AAT leant heavily on the Commissioner’s ruling TR 97/11 in identifying indicia of carrying on a primary production business, but the Federal Court held that this did not invalidate the decision, of the AAT, which still applied relevant principles and law, producing a decision that was open to it. The taxpayer had made many improvements to his property, but had earned no income from the activities in these years.]

[LTN 45, 7/3/14]