12 Dec 1111 Decision Impact Statement - Jooheon Park
The ATO has published a Decision Impact Statement in relation to the AAT decision in Jooheon Park and FCT  AATA 567; 2011 ATC 10-198. The case concerned whether the personal services income of a personal services entity was properly attributed to the taxpayer under s 86-15 of the ITAA 1997.
The AAT concluded that the taxpayer's personal services income derived by the personal services entity was attributable to the taxpayer in the relevant income years. However, the attributed income was reduced by rental expenses incurred by the personal services entity in relation to a Perth apartment, which the AAT held was not the taxpayer's residence.
The Commissioner says that the AAT's decision on the rental expenses was open on the facts of the case. However, the Commissioner is concerned about the AAT's interpretation of s 86-60 as others "may seek to apply the same interpretation; and depending on the factual situation an incorrect outcome could potentially be obtained".