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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 [2011] 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.

 


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