Commissioner of Taxation v La Rosa [2003] FCAFC 125

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v La Rosa [2003] FCAFC 125

INCOME TAX – allowable deductions – illegal business – drug dealer robbed of cash at purchase rendezvous with drug supplier – cash intended for payment for drugs – whether allowable deduction for loss – whether precluded as contrary to public policy. ADMINISTRATIVE LAW – taxpayer in prison – whether Administrative Appeals Tribunal, by refusing to call witnesses requested by taxpayer, denied him procedural fairness. Income Tax Assessment Act 1936 (Cth), s 51(1) Charles Moore & Co (WA) Pty Ltd v Federal Commissioner of Taxation (1956) 95 CLR 344 followed MacFarlane v Commissioner of Taxation (1986) 13 FCR 356 followed Partridge v Mallandaine (1886) 2 TC 179 followed Minister of Finance v Smith [1927] AC 193 referred to Mann v Nash [1932] 1 KB 752 referred to Lindsay v Commissioners of Inland Revenue (1933) SLT 57 referred to S Southern v AB [1933] 1 KB 713 referred to Commissioner v Tellier (1966) 383 US 687 referred to Erdelyi v R (2003) WL 5729 referred to Commissioner of Taxation v Jones (2002) 117 FCR 95 referred to Ronpibon Tin NL & Tongkah Compound NL v Federal Commissioner of Taxation (1949) 78 CLR 47 referred to Guinea Airways Ltd v Federal Commissioner of Taxation (1949) 83 CLR 584 distinguished Federal Commissioner of Taxation v Snowden & Willson Pty Ltd (1958) 99 CLR 431 referred to Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 referred to Mayne Nickless Ltd v Commissioner of Taxation [1984] VR 863 referred to Madad Pty Ltd v Commissioner of Taxation (1984) 4 FCR 420 referred to Tank Truck Rentals v Commissioner (1958) 356 US 30 referred to Wood v United States (1989) 863 F 2d 417 referred to Commissioner v Sullivan (1958) 356 US 27 referred to 65302 British Columbia Ltd v R [1999] 3 S.C.R 804 referred to Bridges v Minister for Immigration & Multicultural Affairs (2001) 114 FCR 456 referred to Gibson v Repatriation Commission [2000] FCA 739 referred to Re Refugee Review Tribunal, ex parte Aala (2000) 204 CLR 82 referred to Arnott v Repatriation Commission (2001) 106 FCR 83 referred to COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v FRANCESCO DOMINICO LA ROSA W267 of 2002 CARR, MERKEL & HELY JJ 5 JUNE 2003 PERTH