OVERCHINA
the following is an excerpt from an AFAP memorandum of 12 May 2004 after the ATO conceded in
an individual case. (my bolding below in the quote)
Following the settlement, our solicitors have provided a notice that we may publish for the benefit of other pilots whose circumstances are similar to the applicant, as follows:
“The Federation recently instructed its solicitors, Mahonys, on behalf of one of its members to appeal to the Federal Court against a decision of the Commissioner of Taxation to disallow the members objection to an Income Tax Assessment in which the Commissioner refused to allow as a deduction any part of expenses incurred by the member in undertaking a training course to fly Boeing 737-400 aircraft.
The member was an employee of Sunstate Airlines at the time he undertook the course, but resigned that employment to take-up employment with Virgin Blue upon successfully completing the course.
The proceeding in the Federal Court was settled shortly before trial when the Commissioner agreed to allow as a deduction the expenses incurred in undertaking the course.
The Commissioner has stated that in settling the proceeding he in no way concedes that other taxpayers, who may have incurred similar expenses to the expenses incurred by the member, would be entitled to a deduction.
The ability of other members to claim a similar deduction will depend upon their circumstances, which should be discussed with their own taxation advisers. However, it would be appropriate for members to inform their taxation advisers of the settlement of this proceeding when considering their own taxation returns.”