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Landmark High Court decision equals multimillion dollar victory for taxpayers



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FEDERAL PARLIAMENT

Saturday, 6 March 1999

Media Release NTAA

National Tax & Accountants’ Association Level

Landmark High Court decision equals multi million dollar victory for taxpayers Yesterday the High Court confirmed taxpayers entitlements to interest deduction where they have

purchased land with the intention of developing it. This represents a massive victory to taxpayers and gives back to them die tax deductions they previously enjoyed.

This decision affects thousands of taxpayers and will enable them to claw back billions of dollars in interest deductions denied over the last 2 years. It is expected that the Commissioner will be absolutely flooded with amendment requests as taxpayers race to get back the tax the High Court now says they should never have had to pay.

Ray Regan states, This landmark decision affects taxpayers constructing flats, holiday apartments, motels, hotels, bed ‘n’ breakfasts or any other type of income producing property. They can now make their claims for interest without the fear of the Commissioner spoiling the party. The High Court has spoken and their word is final. The Commissioner cannot appeal this decision."

For example, Bill Brown buys a block of land and constructs a dwelling on it so it can be rented out. The project takes 3 months to complete. The High Court's decision confirms that Bill is entitled to a deduction for interest expenses incurred in that 3 month period.

Ray Regan states, "this will surely act a s a boon to the property industry and taxpayers all over the country will be rejoicing at what can only be described as a common sense decision."

Ray Regan, President Mobile: 0418 320 761 τ«.ι· «Î¥* QAAfi P a v m QRfifi 3 0 7 ?