06 Dec 11 Decision Impact Statement - Reglon Pty Ltd
The ATO has published a Decision Impact Statement in relation to the Federal Court decision in Reglon Pty Ltd v FCT  FCA 805; 2011 ATC 20-267. The case concerned whether a judgment for damages for conversion of leased equipment was connected with a taxable supply. The Court held that the taxpayer did not make a supply and therefore did not make a taxable supply.
The ATO accepts that an entity does not, merely by bringing a successful action for conversion, make a supply.