Over the last few years the interaction of section 274 and sections 82AAC and 82AAE of the ITAA36 have been explored. The controller contribution is the situation where a person is both the owner of and an employee of a company. Taking advantage of the 'eligible employee' rules in s 82AAA of the ITAA36 the taxpayer makes a contribution to a fund and claims a deduction under ss 82AAC or 82AAE. The receiving fund excludes the contribution claiming it is not assessable under s 274 of the ITAA36. The Commissioner of Taxation after giving a number of favourable rulings on the subject issued a Media Release on 19 May 1999 where he reversed his previous position on such arrangements. This paper examines the Commissioner's views and the operation of the relevant provisions of the ITAAA36.
maintenance