The question of whether an employee expense is capital in nature or on revenue account is not always clear. This is a topic that is increasingly coming under spotlight before the Courts. In the Clough Limited decision, the Full Federal Court added to the longrunning history of revenue versus capital cases, and considered the deductibility of employee entitlements under sections 8-1 and 40-880.
This session explores the key principles emerging from Clough and considerations for taxpayers looking to make and support a deduction both generally, and particularly relating to employee entitlements.