The ATO on Mon 3.6.2013, issued a Decision Impact Statement on the Full Federal Court decision in Sent v FCT [2012] FCAFC 187. In that case, the Full Federal Court dismissed the taxpayer’s appeal and held that the full amount of accrued and unaccrued bonus entitlements of id=”mce_marker”1.6m that were instead paid into an executive share trust on the taxpayer’s behalf had been derived by the taxpayer as ordinary income. On 10 May 2013, Kiefel and Keane JJ refused special leave to the taxpayer to appeal to the High Court.
The ATO said the decisions of the Federal Court in Sent v FCT [2012] FCA 382 and the Full Federal Court confirm the Commissioner’s view on the nature of what is ordinary income as a reward for services, and on when amounts of ordinary income are taken to be derived under s 6-5(4) of the ITAA 1997.
[LTN 105, 3/6/13]