An appeal concerning whether a contractual obligation on the company to pay a shareholder an amount equal to the gain realised on a property was loan relationship ‘debit’ (s. 306A CTA 2009)
The Revenue argued the payment was a distribution under s.1000 CTA 2010 and that the lacked jurisdiction to hear the case. The tribunal found in the taxpayer’s favour on the distribution and jurisdiction issues, but not the debit issue.