Del Castillo and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between Ms. Del Castillo and the Commissioner of Taxation concerning the availability of small business concessions under Division 152 of the *Income Tax Assessment Act 1997* (Cth). The applicant sought to access these concessions in relation to an asset, but the Commissioner disallowed the claim.

The primary legal issue before the Tribunal was whether the asset in question qualified as an "active asset" for the purposes of Division 152, specifically considering the exclusion for vacant land under section 152-40(4)(e) of the Act. The Tribunal also considered, in the alternative, whether the applicant was carrying on a business in the relevant income year.

The Tribunal reasoned that even if the applicant was carrying on a business, the plain words of the exclusion in section 152-40(4)(e) applied to her situation, which involved deriving regular rent from leased premises. The Tribunal found that the applicant was unable to satisfy the active asset test due to this exclusion. Consequently, the Tribunal concluded that there was no need to consider whether the applicant was engaged in a business, as the failure to meet the active asset requirement was determinative.

The Tribunal affirmed the objection decision of the Commissioner.