The AAT has held that “crew members” of commercial fishing vessels were employees of a taxpayer and were not independent contractors as contended, and therefore the taxpayer was liable to pay superannuation guarantee charge.
In the 2010 and 2011 financial years, the taxpayer engaged masters and deckhands (the “crew members”) to crew 4 commercial fishing vessels owned by another entity related to the taxpayer. The Tribunal held the evidence demonstrated that the relationship between the crewmembers and the taxpayer was one of employer and employee. Among other things, it noted the Share Fishing Contract gave the taxpayer the “sole discretion” to determine the duration and destination of voyages. It also said the notion that the crewmembers were running their own enterprise was “intuitively unsound”. However, after receiving and accepting new evidence reducing the quantum of the charge, the Tribunal remitted the matter to the Commissioner with a direction that further assessments be made taking into account the new evidence.
(AAT Case [2013] AATA 637, Re Floorplay Pty Ltd and FCT, AAT, Ref No: 2012/5118, Hack DP, 6 September 2013.)
[LTN 174, 9/9/13]