Allan J Heasman Pty Ltd v Commissioner of Taxation [2015] FCAFC 119

FEDERAL COURT OF AUSTRALIA

Allan J Heasman Pty Ltd v Commissioner of Taxation [2015] FCAFC 119 Citation: Allan J Heasman Pty Ltd v Commissioner of Taxation [2015] FCAFC 119 Appeal from: Allan J Heasman Pty Ltd v Commissioner of Taxation [2014] FCA 1282 Parties: ALLAN J HEASMAN PTY LTD v COMMISSIONER OF TAXATION

File number: NSD 1279 of 2014

Judges: SIOPIS, DAVIES AND WIGNEY JJ

Date of judgment: 28 August 2015

Catchwords: INCOME TAX – appeal from decision of a single judge of this Court dismissing an appeal from decision of the Administrative Appeals Tribunal – where appellant created an employee welfare fund – deductibility of contributions to the fund under s 8-1 of the Income Tax Assessment Act 1997 (Cth) – whether Tribunal considered the nexus between the payments and the appellant's business – respondent's power to make the relevant tax assessments – whether Tribunal erred in finding that the assessments were original rather than amended assessments – whether primary judge erred in holding that the notices of original assessment were effective – whether Tribunal erred in holding that the appellant had failed to show that penalties imposed under ss 226J and 226 X of the Income Tax Assessment Act 1936 (Cth) were excessive

Legislation: Judiciary Act 1903 (Cth) s 39B Income Tax Assessment Act 1936 (Cth) ss 170, 171A, 175, 177, 226J, 226X Taxation Administration Act 1953 (Cth) Pt IVC Income Tax Assessment Act 1997 (Cth) s 8-1 Administrative Appeals Tribunal Act 1975 (Cth) ss 43(2), 43(2B), 44

Cases cited: Federal Commissioner of Taxation v Ryan (2000) 201 CLR 109 George v Federal Commissioner of Taxation (1952) CLR 21 Manufacturing Ltd v Commissioner of Taxation (1995) 63 FCR 535 Hope v Bathurst City Council (1980) 144 CLR 1 Lever Bros Pty Ltd v Federal Commissioner of Taxation (1948) 77 CLR 78 Batagol v Federal Commissioner of Taxation (1963) 109 CLR 243 Danmark v Federal Commissioner of Taxation (1944) 7 ATD 333 Federal Commissioner of Taxation v Wade (1951) 84 CLR 105 Federal Commissioner of Taxation v Futuris Corporation Ltd (2008) 237 CLR 146 Federal Commissioner of Taxation v Dalco (1990) 168 CLR 164 Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168 McAndrew v Federal Commissioner of Taxation (1956) 98 CLR 263 Federal Commissioner of Taxation v Hoffnung & Co Ltd (1928) 42 CLR 39 Federal Commissioner of Taxation v Bayly (1952) 86 CLR 506 Federal Commissioner of Taxation v Prestige Motors (1994) 181 CLR 1 Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47 Federal Commissioner of Taxation v Payne (2001) 202 CLR 93