TaxRambling.com

When I explain how the tax law works some times I am told I can’t be right as that is not fair…

In the case of DGSC and Commissioner of Taxation (2021) AATA 4816 the taxpayer was both an employee and ran her own business. When JobKeeper arose she completed the form from her employer so the employer could get JobKeeper and pass it onto her. after a fortnight of this the accountant of the employee told her she could apply for JobKeeper directly as a business participant. She applied for this and informed her employer to stop applying for JobKeeper for her – effectively she withdrew her declaration to her employer. The employer did not claim JobKeeper for her from that date.

When she applied as a business participant the ATO said she could not get the payments as she had nominated to receive JobKeeper as an employee. She stated she had changed her mind and had withdrawn the declaration to her employer.

The AAT held that there was no mechanism to withdraw this nomination and so she could not get JobKeeper as a business participant once the declaration had be provided to her employer. But as her employer could not retrospectively go back and claim JobKeeper for her she got nothing…

In effect she was eligible for JobKeeper in two different ways, but as she changed her mind under which way she would get it, she did not get it (other than for 2 fortnights).

It may not be fair, but it is the law…