Commissioner of Taxation v Sydney Refractive Surgery Centre Pty Limited [2008] FCAFC 190

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Sydney Refractive Surgery Centre Pty Limited [2008] FCAFC 190

TAXATION – taxpayer corporation receives award of damages for injury to business reputation by defamatory publications – damages calculated by reference to taxpayer's loss of profits attributable to the defamatory publications – whether damages received by the taxpayer constitute 'income according to ordinary concepts' for the purposes of s 6-5 of the Income Tax Assessment Act 1997 (Cth) Income Tax Assessment Act 1997 (Cth) s 6-5 British Transport Commission v Gourley [1956] AC 185 cited Cullen v Trappell (1980) 146 CLR 1 cited Eisner v Macomber 252 US 189 (1920) referred to Liftronic Pty Ltd v Commissioner of Taxation (1996) 66 FCR 175 distinguished London and Thames Haven Oil Wharves Ltd v Attwooll [1967] 2 All ER 124 distinguished Polone v Commissioner of Internal Revenue 505 F3d 966 (9th Cir 2007) cited Roemer v Commissioner of Internal Revenue 716 F2d 693 (9th Cir 1983) cited Rubber Improvement Ltd v Daily Telegraph Ltd [1964] AC 234 cited Sydney Refractive Eye Surgery Centre Pty Ltd v Beaumont [2004] NSWSC 164 discussed Sydney Refractive Surgery Centre Pty Ltd v Commissioner of Taxation (2008) 247 ALR 313 affirmed Tourism Holdings Australia Pty Ltd v Commissioner of Taxes (2007) 210 FLR 80 cited United States v Kaiser 363 US 299 (1960) approved Upenieks v Canada [1995] 1 CTC 8D cited Welch v Helvering 290 US 111 (1933) approved Whyte v Morin [2008] BCWLD 3470 cited Z-Tel Communications Inc v SBC Communications Inc 331 FSupp2d (ED Tex 2004) cited Richard A Posner, Economic Analysis of Law (5th ed, 1998)

COMMISSIONER OF TAXATION v SYDNEY REFRACTIVE SURGERY CENTRE PTY LIMITED (ABN 59 074 156 335)

NSD 601 of 2008

RYAN, EDMONDS & GORDON JJ

18 DECEMBER 2008

SYDNEY