Watson as trustee for the Murrindindi Bushfire Class Action Settlement Fund v Commissioner of Taxation [2020] FCAFC 92

FEDERAL COURT OF AUSTRALIA

Watson as trustee for the Murrindindi Bushfire Class Action Settlement Fund v Commissioner of Taxation [2020] FCAFC 92 Appeal from: Watson as trustee for the Murrindindi Bushfire Class Action Settlement Fund v Commissioner of Taxation [2019] FCA 228

File number: VID 243 of 2019

Judges: KENNY, DAVIES AND THAWLEY JJ

Date of judgment: 27 May 2020

Catchwords: TAXATION – allowable deductions – where the taxpayer is the scheme administrator of the Murrindindi Bushfire Class Action Settlement Scheme – whether the costs and expenses incurred by the taxpayer in administering the Scheme are deductible under s 8-1 of the Income Tax Assessment Act 1997 (Cth) – whether the costs were incurred in gaining or producing assessable income – whether the costs were incurred in carrying on a business – whether the costs were an outgoing of capital or of a capital nature – appeal dismissed

Legislation: Corporations Act 2001 (Cth) s 477 Income Tax Administration Act 1936 (Cth) s 95 Income Tax Assessment Act 1997 (Cth) ss 8-1, 995-1 Supreme Court Act 1986 (Vic) Part 4A, ss 33V, 33ZF

Cases cited: Charles v Commissioner of Taxation (1954) 90 CLR 598 Charles Moore & Co (WA) Pty Ltd v Commissioner of Taxation (1956) 95 CLR 344 at 351 Colonial Mutual Life Assurance Society Limited v Commissioner of Taxation (1953) 89 CLR 428 Commissioner of Taxation v Anstis [2010] HCA 40; 241 CLR 443 Commissioner of Taxation v Citylink Melbourne Limited [2006] HCA 35; 228 CLR 1 Commissioner of Taxation v Day [2008] HCA 53; 236 CLR 163 Commissioner of Taxation v Montgomery [1999] HCA 34; 198 CLR 639 Commissioner of Taxation v Payne [2001] HCA 3; 202 CLR 93 Commissioner of Taxation v Radnor Pty Ltd (1991) 102 ALR 187 Commissioner of Taxation v Sharpcan Pty Ltd [2019] HCA 36; 373 ALR 414 Commissioner of Taxation v Smith (1981) 147 CLR 578 Commissioner of Taxation v Stone [2005] HCA 21; 222 CLR 289 GP International Pipecoaters Pty Ltd v Commissioner of Taxation (1990) 170 CLR 124 Hallstroms Pty Ltd v Commissioner of Taxation (1946) 72 CLR 634 Handley v Federal Commissioner of Taxation (1981) 148 CLR 182 Ronpibon Tin NL v Commissioner of Taxation (1949) 78 CLR 47 Rowe v AusNet Electricity Services Pty Ltd [2015] VSC 232 Spriggs v Commissioner of Taxation [2009] HCA 22; 239 CLR 1 St George Bank Limited v Commissioner of Taxation [2008] FCA 453 Steele v Commissioner of Taxation [1999] HCA 7; 197 CLR 459 Sun Newspapers Limited v Commissioner of Taxation (1938) 61 CLR 337 Trustees of the Estate Mortgage Fighting Fund Trust v Commissioner of Taxation [2000] FCA 981; 102 FCR 15 W Nevill & Co Ltd v Commissioner of Taxation (1937) 56 CLR 290 Watson as trustee for the Murrindindi Bushfire Class Action Settlement Fund v Commissioner of Taxation [2019] FCA 228 Western Gold Mines NL v Commissioner of Taxation (WA) (1938) 59 CLR 729