Miscellaneous 2006

Winning treasure from the courts - treatment of compensation payments and damages awards

Source: Victoria

Published Date: 7 Oct 2006

 

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Suppose a client is offered compensation either for his consent to the cancellation of valuable rights, or to settle a claim for personal injury or unfair discrimination. To deliver the best after tax outcome tax practitioners need to be aware of the possible pitfalls. This paper considers a number of practical case studies exploring:

  • how damages, costs and pre and post judgement interest are taxed
  • when they are deductible on ordinary principles or under the new black hole expenditure provisions
  • when they are consideration for taxable supplies or give rise to an entitlement to an input tax credit
  • indemnities, damages for breach of warranty, reimbursements and liquidated damages clauses in contracts
  • difficulties arising when taxation of damages becomes an issue in the conduct of litigation.

Individual Session

Winning treasure from the courts - treatment of compensation payments and damages awards

Author(s): Michael Hines

Details

  • Published By: Michael Hines
  • Published On:7 Oct 2006
  • Took place at:Cumberland Lorne Resort

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