The pace of tax reform has seen the technical focus of tax advisers on new laws and associated rulings and determinations. This seminar focussed attention back to our Courts and their importance in the interpretation of our tax laws.
Since the Commissioner's negative ruling TR 1999/5, participants in employee benefits arrangements (EBAs) have been waiting for a case to determine the validity of EBAs. In the meantime, the Commissioner has been inviting taxpayers involved in EBAs to settle multiple assessments imposing FBT, additional income tax and large penalties.
The case law drought broke in December 2002 when the Federal Court ruled on an employee incentive arrangement in Essenbourne. The case was a mixed result for the Commissioner. While the Commissioner was successful, the case established obstacles for the Commissioner's alternative FBT, Part IVA assessments and raised issues for advisers in determining and structuring allowable deductions.