Sebastian v Minister for Immigration and Border Protection [2015] FCA 82

FEDERAL COURT OF AUSTRALIA

John Holland Group Pty Ltd v Commissioner of Taxation [2015] FCAFC 82 Citation: John Holland Group Pty Ltd v Commissioner of Taxation [2015] FCAFC 82

Appeal from: John Holland Group Pty Ltd v Commissioner of Taxation [2014] FCA 1332

Parties: JOHN HOLLAND GROUP PTY LTD v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: NSD 1397 of 2014

Parties: JOHN HOLLAND PTY LTD v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: NSD 1398 of 2014

Judges: EDMONDS, LOGAN AND PAGONE JJ

Date of judgment: 11 June 2015

Catchwords: TAXATION – fringe benefits tax – residual fringe benefits – "otherwise deductible" rule – cost of flights paid by employer for employees to travel to remote project location – "fly in, fly out" employees – employees commenced "rostered on" employment duties upon arrival at airport – employees required to act in accordance with employer's directions and observe codes of conduct during travel to project location – whether employees would be entitled to deduction for cost of flights upon hypothesis that employees had paid for the flights – whether travel to project location occurred "in" the employment of the employees – whether employee would not be entitled to deduction by reason that travel to project location was travel from home to work – whether travel to project location within scope of employees' employment and productive of assessable income

Legislation: Fringe Benefits Tax Assessment Act 1986 (Cth) ss 45, 47, 52, 136, 140 Income Tax Assessment Act 1936 (Cth) s 51(1) Income Tax Assessment Act 1997 (Cth) s 8-1