Clough Limited v Commissioner of Taxation [2021] FCAFC 197

Appeal from: Clough Limited v Commissioner of Taxation [2021] FCA 108

INCOME TAXATION – payments made to bring to an end options and rights held by employees – payments made in the context of a scheme of arrangement pursuant to which the majority shareholder bought all shares in company – whether payments made deductible under either positive limb of s 8-1(1) of the Income Tax Assessment Act 1997 (Cth) – held not deductible – whether payments on capital account within the meaning of s 8-1(2)(a) of the Income Tax Assessment Act 1997 (Cth) – held payments on capital account – payments conceded to be deductible under and in accordance with s 40-880 of the Income Tax Assessment Act 1997 (Cth)

Full decision here