03 Jun 099 Personal services business determination made - Yalos EngineeringThe AAT has set aside an objection decision and directed the Commissioner to make a personal services business determination relating to the taxpayer's personal services income. The taxpayer provided consulting engineering services in the offshore oil and gas industry. On the evidence, the AAT was satisfied that, under s 87-65 ITAA 1997, the taxpayer did not meet nor could reasonably have been expected to meet the results test in s 87-18 in either of the relevant years of income.
However, the AAT found that, but for unusual circumstances in the years in question, namely, an unexpected delay in a particular project, the taxpayer could have been expected to meet the unrelated clients test in s 87-20 and/or met the test in one or more preceding years and could reasonably have been expected to meet the test in subsequent years. Accordingly, the AAT directed the Commissioner to make a personal services business determination in favour of the taxpayer for the two income years in issue: Re Yalos Engineering Pty Ltd and FCT  AATA 390 (AAT, B H Pascoe Senior Member, 29 May 2009).
For a copy of the decision, go here.