Assignment on Taxation Ruling TR 95/9.

Taxation Ruling
TR 95/9

About the Ruling
• The ruling is applicable on the employees that are
lawyers. Under this ruling, an employee lawyer involves
the person that are employed as the solicitor, law clerk or
articled clerk.
• The ruling is dealing with assessing the allowances and
reimbursement that is received by the employee lawyers.
• It includes deduction relating to work outgoing usually
claimed by the employee lawyers.

Date of effect:
• The ruling is applicable to the years starting from both the
and following the issue date.
• The ruling is not applied on the taxpayers till the extent that
it conflicts with the settlement terms of the dispute agreed to
prior to the date of issue of Ruling.
• If the taxpayer has a highly favourable private ruling, this
ruling is applied to that taxpayer till the extent of discrepancy
only from and including the income year of 1995-96.

Allowances
Receiving allowances simply do not entitle the employee lawyer for a tax deduction.
The word allowance should not include reimbursement. If the allowance is received it
falls within the following categories:
• The allowance will be taxable completely to employee with a probable deduction
allowances based on the circumstances of an individual.
• The allowance is completely taxable to employee where no deduction is permissible
despite receiving an allowance
• The allowances is completely taxable to employee with deduction permissible for
expenditure occurred is viewed as the subject of special substantial rules.
• An allowance may not be considered taxable to an employee as the employer might
be subjected to FBT.