Clough Limited v Commissioner of Taxation

[2021] FCAFC 197

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Interrogate

Catchwords

1. Income Taxation
1. payments made to bring to an end options and rights held by employees
1. payments made in the context of a scheme of arrangement pursuant to which the majority shareholder bought all shares in company
1. held not deductible

Quick Take

Payments to cancel employee share options and performance rights in the context of a takeover are likely to be characterised as on capital account and not deductible under s 8-1, though they may be deductible over five years under s 40-880.