We have previously talked about Fox v Wood claims in a previous post. As a reminder, the principle established in Fox v Wood(1981) 148 CLR 438 is that the plaintiff is entitled to recover the additional income tax paid in respect of refundable workers compensation receipts.
Fox v Wood is calculated as the difference between the tax on the plaintiff’s taxable income and the tax on the plaintiff’s taxable income less the refundable workers compensation.
Below is a simple template that we use for calculating Fox v Wood claims that you can also use in conjunction with our tax calculator.
You can highlight the table below and copy/paste directly into your word document.
|Fox v Wood Calculations||2006||2007||2008||2009||Total|
|Income less Workers Comp||C=A-B||$||$||$||$|
|Tax on Taxable Income (A)||D|
|Tax on Income less Workers Comp(C)||E|
|Fox v Wood Claim||F=D-E||$||$||$||$||$|
The Fox v Wood claim is the sum of the additional tax paid in each year (yellow box).
I hope that this helps. Feel free to leave comments if you have any questions