Taxation Ruling

TR 2012/8A1 - Addendum

Income tax and fringe benefits tax: assessability of amounts received to reimburse legal costs incurred in disputes concerning termination of employment


This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Ruling TR 2012/8 to improve the terminology used in Example 3, to ensure there is no confusion in the application of the Ruling having regard to current employment and industrial laws.

TR 2012/8 is amended as follows:

1. Paragraph 15

Omit the last sentence in brackets; substitute '(Due to her circumstances, Debbie only has access to common law remedies.)'.

2. Paragraph 16

Omit the last sentence; substitute 'Correspondence between the parties indicates that the parties have agreed to settle for the sum of $120,000 in relation to her dismissal claim and that Debbie's former employer has agreed to pay $20,000, being two thirds of her legal costs shown in the bill.'.

This Addendum applies on and from 14 May 2014.

Commissioner of Taxation
14 May 2014


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ATO references:
NO 1-5D40N0D

ISSN: 1039-0731