The taxpayers have lodged a notice of appeal to the Federal Court against the decision in AAT Case [2013] AATA 58, Re Purvis & Ors and FCT. In that case, the AAT confirmed that lump sum payments made to former Qantas pilots under a “loss of licence insurance” scheme if they lost their pilots’ licences for medical reasons were assessable to the pilots as eligible termination payments (ETPs). The taxpayers argued that the payments were not assessable as ETPs [eg. exempt for personal injury or capital loss].

[LTN 84, 6/5/13]