Greig argued that he bought shares in a now defunct company called Nexus purely as a profit-making venture as established under the Myer legal principle. He also tried to claim that he was in the business of trading shares in Nexus.
The Federal Court disagreed, finding that Greig was an ordinary private investor who had incurred a capital loss. The case highlights the fine line that often distinguishes capital from revenue when looking at gains and losses from any investment.
“It is crucial that the taxpayer’s relevant intention is supported by evidence,” Clint told reporter Joanna Mather. “That means being able to produce documentation to the ATO that is consistent with your stated intent.
“It’s not about what you think, it’s about what you can prove.”
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