Watson v Deputy Commissioner of Taxation [2010] FCAFC 17

FEDERAL COURT OF AUSTRALIA

Watson v Deputy Commissioner of Taxation [2010] FCAFC 17 Citation: Watson v Deputy Commissioner of Taxation [2010] FCAFC 17

Appeal from: Watson v Deputy Commissioner of Taxation [2008] FCA 1173

Parties: CRAIG WATSON v DEPUTY COMMISSIONER OF TAXATION

File number: SAD 76 of 2009

Judges: DOWSETT, STONE AND BENNETT JJ

Date of judgment: 4 March 2010

Corrigenda: 4 March 2010 9 March 2010

Catchwords: TAXATION – deferral of losses from non-commercial business activities – appellant runs business as financial planner – appellant became partially disabled and ran business at a loss – whether benefit paid under income protection insurance policy for partial disability was assessable income from business activity – meaning of "from" in s 35-10(2) of Income Tax Assessment Act 1997 (Cth) – benefit under insurance policy not "from" business

Legislation: Income Tax Assessment Act 1997 (Cth) ss 35-5, 35-10, 35-30, 35-35, 35-50, 35-55

Cases cited: BHP Petroleum (Timor Sea) Pty Ltd v Minister for Resources (1994) 49 FCR 155 applied Federal Commissioner of Taxation v Smith (1981) 147 CLR 578 considered Federal Commissioner of Taxation v Snowden & Wilson Pty Ltd (1958) 99 CLR 431 considered G.P. International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1989) 170 CLR 124 cited Kidston Goldmines Ltd v Commissioner of Taxation (1991) 30 FCR 77 cited Warner Music Australia Pty Limited v Commissioner of Taxation (1996) 70 FCR 197 cited Watson v Department of Family & Community Services (2003) 128 FCR 564 referred to