13 Mar 07 Only cash outlay for tea tree scheme deductible - PrinciAs a result of a concession by the Commissioner, the AAT has held that Part IVA only applied to disallow that part of the deductions claimed by the taxpayers which exceeded their actual cash outlay invested in the Northern Rivers Tea Tree Oil Projects. The amounts represented by the cash outlay were therefore allowed as deductions. The Full Federal Court previously considered the deductibility of payments to the Northern Rivers Tea Tree Oil Projects in FCT v Sleight (2004) 136 FCR 211.
Princi and Ors and FCT  AATA 1119 (AAT, Pascoe SM, 9 March 2007).
For a copy of the decision, go here