The Tax Office has today [Tue 4.8.2009] released a Decision Impact Statement on the AAT’s decision in AAT Case [2009] AATA 83, Re Aitken & Anor and FCT. The case concerned whether amounts paid to shareholders of a company (the taxpayers), being the proceeds from the sale of company assets and paid to the taxpayers by the purchaser, were dividends assessable under s 44 of the ITAA 1936. The Tax Office said the AAT found that the receipts in question were the beneficial property of the company, rather than the taxpayers and were accordingly not dividends assessable under s 44.
The Tax Office said the AAT found the payments to the taxpayers were held by them on trust and used for the benefit of the company. It said: “This finding of fact was based on oral evidence which was neither supported by, nor inconsistent with, the documentary evidence”. It added that this was a finding of fact open on the evidence and that the AAT’s decision accordingly does not disclose an error of law.
This article appeared in Thomson’s Alert 24 To find out more, phone Thomson Customer Service on 1300 304 197 or click here.
Recent Comments