The AAT has affirmed that a business was liable to the super guarantee charge (SGC) as the work provided by a tandem master parachutist it paid was in the capacity of an employee under s 12 of the SGAA.
The taxpayer operated a business of providing tandem parachuting services. The business paid, among others, tandem master parachutists. During the quarters ended 31 March 2005 to 30 June 2008, the taxpayer did not make any contributions to the super fund of the tandem master parachutist. The taxpayer broadly contended that the tandem master was not an employee, nor a person working under a contract that was wholly or principally for labour, therefore it was not required to make any super contributions.
The AAT held the tandem master was an employee of the taxpayer as broadly the services provided by the master were an integral part of the business. It found the taxpayer had control over the tandem master’s attendance, grooming and treatment of customers, and the taxpayer provided all the core equipment for the activity.
Before the hearing, the Commissioner conceded that his original assessments were excessive, therefore, the Tribunal referred the matter back to the Commissioner to issue amended assessments. Otherwise, the Tribunal affirmed the Commissioner’s decision and held that the taxpayer was liable to the SGC.
(AAT Case [2012] AATA 120, Re General Aviation Maintenance Pty Ltd and FCT, AAT, Ref Nos 2010/5564-5567, O’Loughlin SM, 28 February 2012.)
[LTN 40, 29/2]