Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v Commissioner of Taxation [2015] FCAFC 4

FEDERAL COURT OF AUSTRALIA

Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v Commissioner of Taxation [2015] FCAFC 4 Citation: Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v Commissioner of Taxation [2015] FCAFC 4

Appeal from: Taras Nominees Pty Ltd as Trustee for the Burnley Street Trust v Commissioner of Taxation of the Commonwealth of Australia [2014] FCA 1

Parties: TARAS NOMINEES PTY LTD AS TRUSTEE FOR THE BURNLEY STREET TRUST v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: VID 162 of 2014

Judges: PERRAM, ROBERTSON AND PAGONE JJ

Date of judgment: 28 January 2015

Catchwords: INCOME TAX – Capital Gains Tax – conveyance of land to trustee for purposes of joint venture – whether transfer of land a "settlement" giving rise to a CGT event – whether transferor retained beneficial ownership of land – method of valuing land for purposes of calculating taxable capital gain – whether development costs ought be taken into account for purposes of cost base.

Legislation: Income Tax Assessment Act 1997 (Cth), ss 102-20, 102-25(1), 104-10, 104-55, 106-50, 110-25(5)

Cases cited: Boland v Yates (1999) 167 ALR 575 Booth v Ellard [1980] 1 WLR 1443 Buzza v Comptroller of Stamps (Victoria) (1951) 83 CLR 286 Commissioner for Railways (NSW) v Agalianos (1955) 92 CLR 390 Commissioner of State Revenue v Victoria Gardens Developments Pty Ltd (2000) 46 ATR 61 Grollo Homes Pty Ltd v Comptroller of Stamps [1983] 1 VR 445 Kafataris v Deputy Commissioner of Taxation (2008) 172 FCR 242 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 Spencer v Commonwealth (1907) 5 CLR 418