The taxpayer has appealed to the Federal Court against the decision in Re PFGG and FCT  AATA 972. In that decision, the AAT confirmed that the taxpayer involved in the mining industry which made a capital gain of $5.4m from the sale of Western Australia mining tenements was not eligible for the CGT small business concessions as it failed the $2m “small business entity” (SBE) test in Subdiv 328-C of the ITAA 1997.
[LTN 9, 15/1/16]
 AATA 972 – catchwords
INCOME TAX – small business entities – tax concessions – 50% capital gains tax “active assets” reduction – aggregated turnover – annual turnover – company “connected with” the applicant – fuel disbursements – “ordinary income” – meaning of “in the ordinary course of carrying on a business” – meaning of “sales of retail fuel” – objection decision affirmed
[FJM Note: It appears that the taxpayer failed the ‘minimum net asset value test’ and had to resort to the alternative ‘small business entity’ test, where $2m turnover cap is relevant and so is the meaning of the relevant ‘turnover’ tests.]