The AAT has held that the amounts paid by the clients of a taxpayer to a trust for professional services provided by the taxpayer and declared by the taxpayer as distributions from the trust and trust income, were ordinary income as well as personal services income of the taxpayer.
The AAT also found that the taxpayer was not entitled to deductions for amounts disclosed by his wife in her income tax returns, nor to deductions for superannuation and travel expenses.
Source – Ariss v FC of T 2019 ATC ¶10-507; [2019] AATA 2958, Dr M Evans (Senior Member), 23 August 2019.
