70/30 income distribution arrangement amiss in FCT v Ariss

AAT rejects taxpayer’s claim of 70/30 income apportionment between him and his wife for his consulting services

The Administrative Appeals Tribunal (AAT) has ruled in Ariss and Commissioner of Taxation [2019] AATA 2958 that an arrangement that purported to distribute trust income to a taxpayer and his wife was ineffective, instead finding that the income was solely attributable to the taxpayer as ordinary income.Trust arrangement didn’t reflect realityThe taxpayer was an IT specialist who provided services as a consultant to a number of clients. Later on, the taxpayer commenced providing his services, ...

Sign in below or register now to read the full article

Authors: Gareth Brown

Published Date: 06 September 2019