The ATO has updated its decision impact statement on the Full Federal Court’s decision in Greig v FC of T 2020 ATC ¶20-733; [2020] FCAFC 25, which considered the profit-making principle in FC of T v Myer Emporium Ltd 87 ATC 4363; [1987] HCA 18.
The updated impact statement clarifies that the decision in Greig has no impact on the following rulings:
• Taxation Ruling TR 92/3 Income tax: whether profits on isolated transactions are income
• Taxation Ruling TR 92/4 Income tax: whether losses on isolated transactions are deductible.
The Commissioner considers the decision to be consistent with the ATO’s explanation of the Myer Emporium principle in existing advice and guidance.
Source: Decision impact statement NSD 1427 of 2018, ATO website, 9 June 2022, accessed 9 June 2022.
