Published on 01 Dec 99
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
In late February, the Federal Court held that a taxpayer could claim a deduction under sec. 51(1) of the Income Tax Assessment Act 1936 for payments made under an indemnity given by the taxpayer to a third party who had purchased shares from a subsidiary of the taxpayer (Email Limited v FCT 99 ATC 4,208). However, in September, the Full Federal Court held that the payments were made on capital account and were not deductible (FCT v Email Limited 99 ATC 4,868). This article reports on this case.