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13 Nov 08 Implications in the recovery of legal costs - PS LA 2008/16

On 12 November 2008, the ATO issued Practice Statement PS LA 2008/16 entitled "The GST implications in the recovery of legal costs (professional fees and disbursements) awarded by courts or settled by agreement between the parties".

The purpose of the Practice Statement is to ensure that ATO staff:

  1. are aware of the GST implications in the recovery of legal costs, and
  2. correctly determine if GST is to be included when making a payment of legal costs or formulating a schedule of legal costs to receive payment under a court order or out-of-court settlement by agreement between the parties.
For a copy of PS LA 2008/16, go here.

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