Amex loses appeal on tax refunds

Yet another Federal Court of Australia decision involving goods and services tax (GST) law has been a split one. In the case of credit card company American Express and the Australian Taxation Office's (ATO) claims over late payment fees, judge Susan Kenny and John Middleton ruled in favour of the agency, finding that the original judgment being appealed had been flawed in applying a consideration-based rather than revenue-based approach.

Had the decision gone against the ATO, it would have had to make hundreds of thousands of dollars' worth of refunds on GST collection. An appeal to the High Court is still likely.

Sourced from Trading Markets

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