Commissioner of Taxation v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127 Citation: Commissioner of Taxation v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127

Appeal from: The Taxpayer and Commissioner of Taxation [2010] AATA 455

Parties: COMMISSIONER OF TAXATION v BYRNE HOTELS QLD PTY LTD

File number: QUD 280 of 2010

Judges: DOWSETT, BENNETT AND GREENWOOD JJ

Date of judgment: 11 October 2011

Catchwords: TAXATION – capital gains tax – whether business eligible for capital gains tax concessions in Division 152 of Income Tax Assessment Act 1997 (Cth) – whether the maximum net asset value test in s 152-15 of the Act is satisfied – meaning of "liabilities" in s 152-20(1) of the Act – whether real estate commission and legal fees were "liabilities" for purposes of s 152-20(1) "just before" the CGT event

Words & phrases: "just before"; "liabilities"

Legislation: Income Tax Assessment Act 1997 (Cth) ss 104-10, 108-5, 152-1, 152-10, 152-15, 152-20, 152-20(1), 152-205, 152-410

Cases cited: Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1 cited Walters v Babergh District Council (1983) 82 LGR (Eng) 235 - cited McDowell v Baker (1979) 144 CLR 413 cited Legal Services Commissioner v Baker (No 2) [2006] QCA 146 – cited Keppel v Wheeler [1927] 1 KB 577) – cited Georgieff v Athans (1981) 26 SASR 412 - cited Havas v Cornish & Co Pty Ltd [1985] 2 Qd R 353 - cited Fitzgerald v Metcalfe [1917] NZLR 486 – cited Wardley Australia Ltd and Anor v State of Western Australia (1992) 175 CLR 514 - cited