Commissioner Of Taxation v Sleight [2004] FCAFC 94

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Sleight [2004] FCAFC 94

INCOME TAX – tax avoidance – whether scheme to which Part IVA of Income Tax Assessment Act 1936 (Cth) ("the Act") applied – investment in tea tree project – whether it would be concluded that taxpayer and his wife entered into scheme with dominant purpose of obtaining tax benefits.

INCOME TAX – deductions – prepaid management fees and prepaid interest – whether involved in carrying on a business – whether outgoings of capital nature.

INCOME TAX – determination made under s 177F of the Act – whether person making the determination was properly authorised to do so as delegate of the Commissioner – whether discretion to make determination miscarried because the person who made the determination failed to take into account the personal circumstances of the taxpayer. Income Tax Assessment Act 1936 (Cth) Pt IVA, ss 177F, 177A, s 175 Vincent v Commissioner of Taxation (2002) 193 ALR 686. referred to Federal Commissioner of Taxation v Lau (1984) 6 FCR 202 referred to Commissioner of Taxation v Emmakell Pty Ltd (1988) 22 FCR 157 referred to Puzey v Federal Commissioner of Taxation [2002] FCA 1171 referred to Cooke v The Commissioner of Taxation [2002] FCA 1315 referred to Fletcher v Commissioner of Taxation (1991) 173 CLR 1 referred to Mochkin v Federal Commissioner of Taxation (2002) ATC 4465 referred to Fairway Estates Pty Ltd v Federal Commissioner of Taxation (1970) 123 CLR 153 cited Steele v Deputy Commissioner of Taxation (1999) 197 CLR 459 cited Travelodge Papua New Guinea Ltd v Chief Collector of Taxes (1985) 16 ATR 867 Hope v Bathurst City Council (1980) 144 CLR 1 referred to Puzey v Federal Commissioner of Taxation (2003) ATC 4782 referred to Thomas v Federal Commissioner of Taxation (1972) 46 ALJR 397 cited Clowes & Anor v Federal Commissioner of Taxation (1954) 91 CLR 209 referred to Enviro Systems Renewable Resources Pty Ltd v Australian Securities and Investment Commission (2001) 80 SASR 1 referred to Commissioner of Taxation v Emmakell Pty Ltd (1990) 22 FCR 157 referred to Federal Commissioner of Taxation v Brand(1995) 9 ATC 4633 referred to Federal Commissioner of Taxation v Zoffanies Pty Ltd (2003) ATC 4942 cited Eastern Nitrogen Ltd v Federal Commissioner of Taxation (2001) 108 FCR 27 Federal Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404 cited Federal Commissioner of Taxation v Consolidated Press Holdings (2001) 207 CLR 235 cited Peabody v Federal Commissioner of Taxation (1993) 93 ATC 4104 cited Howland-Rose v Federal Commissioner of Taxation 2002 ATC 4200 referred to O'Reilly v The Commissioner of the State Bank of Victoria (1983) 153 CLR 1 cited George v Federal Commissioner of Taxation (1952) 86 CLR 183 referred to Deputy Commissioner of Taxation v Richard Walter Pty ltd 91995) 183 CLR 168 cited R v Hickman; ex parte Fox and Clinton (1945) 70 CLR 598 cited Commissioner of Taxation v Cooke (2004) FCAFC 75 distinguished COMMISSIONER OF TAXATION v KEVIN SLEIGHT W 199 of 2003