AAT rejects associate connection based on sufficient influence - 7 March 2018
A recent decision of the Administrative Appeals Tribunal (AAT) considered the meaning of sufficient influence, in determining whether a company was an “associate” of another. The AAT held in favour of the taxpayer and concluded that the relevant companies were not sufficiently influenced, and so were not associates. The concept of associate, which is used widely throughout tax legislation, is extremely broad. However, this decision rejects the approach that the ATO had adopted.
Published: March 2018