Impact of the new business tax system (alienation of personal services income) Act 2000

Cassidy, Julie 2002, Impact of the new business tax system (alienation of personal services income) Act 2000, Australian business law review, vol. 30, no. 2, pp. 90-105.

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Title Impact of the new business tax system (alienation of personal services income) Act 2000
Author(s) Cassidy, Julie
Journal name Australian business law review
Volume number 30
Issue number 2
Start page 90
End page 105
Publisher Lawbook Co.
Place of publication Sydney, N.S.W.
Publication date 2002
ISSN 0310-1053
Summary The implications of categorising income as "personal services income" and the actual meaning of this term have been marked with uncertainty. The Commissioner of Taxation has long asserted that "personal services income" inherently may not be derived by an entity other than the person whose exertions produce the income. In Liedig v FCT (1994) 28 ATR 141, however, Hill J held that in the absence of a specific legislative provision, there was no basis for the Commissioner's doctrine. The specific legislative measures Hill J required were put in place through the New Business Tax System (Alienation of Personal Services Income) Act 2000. In certain circumstances this Act prevents interposed entities from deriving personal services income. Such payments are attributed instead to the individual who performs the services.

It will also be seen, however, that these provisions do not apply to entities that are conducting a "personal services business". It is submitted that the combined effect of, inter alia, the Act's definition of "personal services income" and "personal services business" is to give the Act a narrower scope than the Commissioner's personal services doctrine. Moreover, it will be submitted that the statutory definition of personal services income also suffers from the same flaws that Hill J identified as relevant to the Commissioner's personal services doctrine.
Language eng
Field of Research 180125 Taxation Law
HERDC Research category C1 Refereed article in a scholarly journal
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Document type: Journal Article
Collections: Faculty of Business and Law
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