Commentary

(b) Settlement of dispute on termination

Division BII Taxation of Employment Income
| Commentary

(b) Settlement of dispute on termination

| Commentary

(b)     Settlement of dispute on termination

At one time it was suggested that the provision was apt to catch a payment made in full and final settlement of a dispute on termination of employment. The Revenue's public position (Statement of Practice SP 3/96) is that the provisions are not intended to catch a financial settlement relating to the termination of an employment whereby the employee:

  1.  

    —     accepts the termination package in full and final settlement of all his outstanding claims relating to the employment; and/or

  2.  

    —     undertakes not to commence or, if already commenced, to discontinue, any legal proceedings in

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