Employees or Independent Contractors? (or when is a duck really a rooster?): Update April 2011

The Federal Court has again sent a very clear signal to businesses: they will not succeed in avoiding statutory obligations by the disguise of employment relationships.

On 13 April 2011 the Federal Court (Bromberg J) dismissed an appeal by On Call Interpreters and Translators Agency Pty Ltd (On Call) against an objection decision by the Commissioner that On Call was liable to pay the 'superannuation guarantee charge' in respect of interpreters and translator.

The decision further bolsters the Commissioner’s Full Federal Court win last year in Roy Morgan Research Pty Ltd v Commissioner of Taxation which found that Roy Morgan’s interviewers were employees for the purposes of the Superannuation Guarantee (Administration) Act 1992 (Cth) (the Act).[1]

Angela Wood of the Maddocks Tax Controversy team acted for the Commissioner in these proceedings.

To view fulll update, please download PDF.
 

[1] The High Court has recently heard Roy Morgan’s appeal against the Full Court’s finding that the Superannuation Guarantee (Administration) Act and Superannuation Guarantee Charge Act  are both constitutionally invalid. Judgment was reserved. On Call accepted that Bromberg J was to follow the decision of the Full Court in the Roy Morgan proceedings, but did reserve its right on appeal on this issue.