The question of whether an employee expense is capital in nature or on revenue account is not always clear. This is a topic that is increasingly coming under spotlight before the Courts. In the Clough Limited decision, the Full Federal Court added to the long-running history of revenue versus capital cases, and considered the deductibility of employee entitlements under sections 8-1 and 40-880.
This session will explore the key principles emerging from Clough and considerations for taxpayers looking to make and support a deduction both generally, and particularly relating to employee entitlements.