De Figueiredo and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Mr De Figueiredo against a decision of the Commissioner of Taxation to disallow his objection. The dispute centred on whether an amount of $3,610,467 was assessable income for the year ended 30 June 2011. The Senior Member of the Tribunal considered the factual circumstances surrounding Mr De Figueiredo's participation in an employee profit participation plan within the Glencore Group and the subsequent granting of new shares.

The primary legal issue before the Tribunal was whether the value of new shares received by Mr De Figueiredo in May 2011 constituted assessable income under section 6-5(2) of the *Income Tax Assessment Act 1997* (ITAA 1997). This required determining whether the shares were derived as income according to ordinary concepts, and if so, when that derivation occurred, particularly in light of section 6-5(4) of the ITAA 1997, which deems an amount to be received when it is applied or dealt with on the taxpayer's behalf.

The Tribunal reasoned that the issue of the new shares to Mr De Figueiredo, who was an Australian resident at the time, had the character of income in his hands. Applying the principles established in *Blank's case*, the Tribunal concluded that the amount was derived by Mr De Figueiredo when he received the shares in May 2011, as per the deeming provision in section 6-5(4) of the ITAA 1997.

Consequently, the Tribunal found that Mr De Figueiredo had not discharged the onus of proving that the Commissioner's assessment was excessive. Accordingly, the Commissioner's objection decision was affirmed.