Dozens of people - including former Wallaby turned writer Peter FitzSimons; his wife, television host Lisa Wilkinson; and company director Russell Scrimshaw - are taking on the tax office over their investments in retirement villages.
It was revealed yesterday that the Australian Taxation Office would defend cases brought by about 80 investors who claimed deductions relating to the construction of retirement villages.
It is funding a test case over a deduction investor Anthony Malouf claimed was incurred in 1999 that raises similar issues.
Mr. Malouf, and others, relied on a 1994 tax office ruling that said expenditure incurred in acquiring or developing a retirement village would be "considered expenditure of a revenue nature'' and a deduction would be allowed in the year it had been incurred.
Although the partnership entered into by Mr. Malouf made a partial payment in 1999, the balance was to be paid some time later in the development phase of construction.
The tax office later issued Mr Malouf with an amended assessment for the years 2000 and 2001 – disputing that he had incurred the balance of the purchase price in 1999.
But Federal Court judge James Allsop found in Mr. Malouf's favour in April, saying there was a contractual undertaking in 1999.