The ATO has issued a Decision Impact Statement on the decision in FCT v Nash [2013] FCA 336. In that case, the Federal Court allowed the Commissioner’s appeal against an earlier AAT decision, which had held that a taxpayer was entitled to deductions of GIC accrued amounts for each year GIC was referable. Among other things, the Court found that the AAT had erred in law in not factoring into its analysis the importance of the giving of a notice of assessment in creating a liability to pay income tax. The ATO said the decision was consistent with its long-standing view that income tax (and any GIC on unpaid income tax) is due and payable only once income tax has been assessed.
[LTN 115, 18/6/13]