Twin Rivers Developments Pty Limited and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Twin Rivers Developments Pty Limited (TRD) against a decision by the Commissioner of Taxation (Commissioner) disallowing TRD's objection to the Commissioner's determination that TRD was not entitled to Cash Flow Boost (CFB) payments for the March 2020 and June 2020 quarterly tax periods. The dispute centred on whether TRD had paid wages in those quarters and whether any scheme was entered into or carried out for the dominant purpose of obtaining or increasing the CFB. The Administrative Appeals Tribunal was required to review the Commissioner's objection decision.

The legal issues before the Tribunal were whether TRD had discharged its burden of proof by demonstrating that wages were paid to Mr and Mrs Cahill as employees in the relevant tax periods, and whether TRD had proven that it did not enter into or carry out a scheme for the sole or dominant purpose of making itself entitled to a CFB or increasing its entitlement. Implicit in the first issue was the question of whether Mr and Mrs Cahill were employees of TRD, a point disputed by the Commissioner.

The Tribunal considered the evidence presented by TRD, including payslips issued for Mr and Mrs Cahill and bank statements. While the Commissioner highlighted the absence of typical contemporaneous employee onboarding documentation, the Tribunal gave this less weight, considering the context of a small family business. The Tribunal found that the issue of payslips, supported by unchallenged oral evidence that they were issued on or about their dates, implicitly supported the view that TRD intended the payments to be in return for duties performed under an employment relationship. The Tribunal also noted that the work, though not performed in a regular pattern of hours or for regular remuneration, was carried out on an ongoing basis over an extended period, which is consistent with an employment relationship.

The Tribunal substituted the Commissioner's decision, finding that TRD was entitled to the CFB for the March 2020 quarter but not for the June 2020 quarter.