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Does the taxpayer, who carries on business as a glass artist, qualify as a 'special professional' under subsection 405-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?

Yes. The taxpayer qualifies as a 'special professional' under subsection 405-25(1) of the ITAA 1997.

The taxpayer carries on a business as a glass artist, which involves producing glass works for sale.

Paragraph 405 25(1)(a) of the ITAA 1997 includes as a 'special professional', the author of an artistic work. The note to this subsection states that the expression 'author' is a technical term from copyright law. In general the 'author' of an artistic work is the artist, sculptor or photographer who created it.

While the term 'artistic work' is not defined in the income tax legislation, the meaning given to the term in the Copyright Act 1968 is used for the purposes of subsection 405-25(1) of the ITAA 1997. Under subsection 10(1) of the Copyright Act 1968 , the term 'artistic work' means: (a) a painting, sculpture, drawing, engraving or photograph, whether the work is of artistic quality or not; (b) a building or a model of a building, whether the building or model is of artistic quality or not; or (c) a work of artistic craftsmanship whether or not mentioned in paragraph (a) or (b); but does not include a circuit layout within the meaning of the Circuit Layouts Act 1989.

The taxpayer is therefore an author of artistic work under paragraph (a) or (c) of subsection 10(1) of the Copyright Act 1968 and as such qualifies as a 'special professional' as defined in subsection 405-25(1) of the ITAA 1997.

Date of Amendment Part Comment 1 May 2015 Issue Updated for style. Reasons for Decision Updated to align with amended legislation.

Date of Amendment | Part | Comment

1 May 2015 | Issue | Updated for style.

Reasons for Decision | Updated to align with amended legislation.