Eichmann v Commissioner of Taxation [2020] FCAFC 155

Federal Court of Australia

Eichmann v Commissioner of Taxation [2020] FCAFC 155 Appeal from: Commissioner of Taxation v Eichmann [2019] FCA 2155

File number: QUD 43 of 2020

Judgment of: MCKERRACHER, STEWARD AND STEWART JJ

Date of judgment: 18 September 2020

Catchwords: TAXATION – appeal from judgment of Federal Court of Australia setting aside decision of Administrative Appeals Tribunal in relation to private ruling – where ruled facts stated that relevant entity carried on a business of building, bricklaying and paving – where taxpayer sought ruling that a block of land used by that business for storage of work tools, equipment and materials was an "active asset" for purposes of s. 152-40 of Income Tax Assessment Act 1997 (Cth.) – where Commissioner ruled that land was not used in course of carrying on a building, bricklaying and paving business and was not active asset – where Tribunal set aside Commissioner's decision and substituted decision that land was an active asset – whether correct test was identified for definition of an active asset – whether land was nonetheless an active asset based upon the facts described in ruling

Legislation: Energy Grants (Credits) Scheme Act 2003 (Cth.) Income Tax Assessment Act 1936 (Cth.) ss. 26(g), 51(1) Income Tax Assessment Act 1997 (Cth.) ss. 152-1, 152-40, 328-120, 950-150 Taxation Administration Act 1953 (Cth.) Sch. 1, s. 357-105, Div. 359 Explanatory Memorandum, New Business Tax System (Capital Gains Tax) Bill 1999 (Cth.)

Cases cited: Asciano Services Pty Ltd v. Federal Commissioner of Taxation (2009) 174 F.C.R. 140 Collector of Customs v. Cliffs Robe River Iron Associates (1985) 7 F.C.R. 271 Doutch v. Federal Commissioner of Taxation (2016) 248 F.C.R. 211 Federal Commissioner of Taxation v. Payne (2001) 202 C.L.R. 93 First Provincial Building Society Ltd v. Federal Commissioner of Taxation (1995) 56 F.C.R. 320 HP Mercantile Pty Ltd v. Federal Commissioner of Taxation (2005) 143 F.C.R. 553 Khoury v. Government Insurance Office of New South Wales (1984) 165 C.L.R. 622 Mitsui & Co (Australia) Ltd v. Federal Commissioner of Taxation [2011] FCA 1423; (2011) 86 A.T.R. 258 Owners of Shin Kobe Maru v. Empire Shipping Co Inc. (1994) 181 C.L.R. 404 Rus v. Federal Commissioner of Taxation [2018] AATA 1854; (2018) 108 A.T.R. 212 Victoria Power Networks Pty Ltd v. Federal Commissioner of Taxation [2019] FCA 77; (2019) 109 A.T.R. 537