Vincent v Commissioner of Taxation [2002] FCAFC 291

FEDERAL COURT OF AUSTRALIA

Vincent v Commissioner of Taxation [2002] FCAFC 291 INCOME TAX – applicant invested in a cattle breeding program using embryo transfer – finding that no business carried on unchallenged – whether management and other fees claimed were capital or of a capital nature and thus not an allowable deduction under s 51(1) of the Income Tax Assessment Act 1936 (Cth). INCOME TAX – whether the "scheme" in which the applicant invested fell within Part IVA of the Act – whether the definition of "tax benefit" in s 177C(A) should be read as if "a deduction being allowable" included "allowed" deductions albeit wrongly allowed – whether primary judge erred in considering whether promoter had carried out the scheme for the dominant purpose of obtaining a tax benefit for the applicant.

Income Tax Assessment Act 1936 (Cth) ss 51(1), 51(2), 59, 82(2), 122(2), 160ZH(6B), 160ZH(8) 170(2)(v)(ii), 177D(b), 177C(1), 177C(A), 177F(1), 177G Taxation Administration Act 1953 (Cth) s 144ZZ(a) Sun Newspapers Ltd and Associated Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 followed Federal Commissioner of Taxation v Lau (1984) 6 FCR 202 discussed Federal Commissioner of Taxation v Woolcombers (WA) Pty Ltd (1993) 47 FCR 561 cited Federal Commissioner of Taxation v Broken Hill Pty Co Ltd (2000) 179 ALR 593 applied Colonial Mutual Life Assurance Society Ltd v Federal Commissioner of Taxation (1953) 89 CLR 428 referred to Hallstroms Pty Ltd v Federal Commissioner of Taxation (1946) 72 CLR 634 referred to Federal Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645 cited Snook v London & West Riding Investments [1967] 1 All ER 518 cited Sharrment Pty Ltd v Official Receiver in Bankruptcy (1988) 18 FCR 449 cited John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 cited Walker v Federal Commissioner of Taxation (1983) 70 FLR 354 cited Ferguson v Federal Commissioner of Taxation (1979) 37 FLR 310 discussed Federal Commissioner of Taxation v Walker (1984) 2 FCR 283 discussed Federal Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 179 ALR 625 cited