Sladden v Commissioner of Taxation [2024] FCAFC 122

Federal Court of Australia Sladden v Commissioner of Taxation [2024] FCAFC 122 Appeal from: Julie Ann Sladden v Commissioner of Taxation

File number(s):

Judgment of: O'SULLIVAN, HESPE AND NESKOVCIN JJ

Date of judgment: 19 September 2024

Catchwords: TAXATION — appeal from a decision of the Administrative Appeals Tribunal affirming the decision of the Commissioner of Taxation to disallow the applicant's objection to an income tax assessment — where claim made by applicant for future income protection benefit entitlements under a policy of insurance which also included provision for Life Insurance — where applicant receives sum in settlement of claim for income benefits — where the AAT found the settlement sum is characterised as assessable ordinary income — where the settlement also included a component for the Life Insurance — whether AAT erred in determining the nature of the settlement sum other than entirely by the terms of the deed of release — whether the AAT erred in characterising the settlement sum as being entirely income in character by reference to parties' subjective state of mind — lump sum settlement in satisfaction of the applicant's claim for income benefits under the policy — appeal dismissed

Administrative Appeals Tribunal Act 1975 (Cth), s 44 Legislation: Income Tax Assessment Act 1997 (Cth), ss 6-5, 15-30, 118-300(1) Life Insurance Act 1995 (Cth), Part 9

AAI Ltd v Technology Swiss Pty Ltd (2021) 286 FCR 208; [2021] FCAFC 168 Allied Mills Industries Pty Ltd v Commissioner of Taxation (1989) 20 FCR 288; (1989) 20 ATR 457 Allsop v Commissioner of Taxation (1965) 113 CLR 341; [1965] HCA 48 Federal Commissioner of Taxation v CSR Ltd (2000) 104 FCR 44; [2000] FCA 1513 Federal Commissioner of Taxation v Spedley Securities Ltd (1988) 19 ATR 938; (1988) 88 ATC 4126 GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124; [1990] HCA 25 Cases cited: Haritos v Federal Commissioner of Taxation (2015) 233 FCR 315; [2015] FCAFC 92 Julie Ann Sladden v Commissioner of Taxation [2023] AATA 3815 McLaurin v Federal Commissioner of Taxation (1961) 104 CLR 381; [1961] HCA 9 Reuter v Federal Commissioner of Taxation (1993) 27 ATR 256; (1993) 93 ATC 5030 Scott v Federal Commissioner of Taxation (1966) 117 CLR 514; [1966] HCA 48 Sharp Corporation of Australia Pty Ltd v Collector of Customs (1995) 59 FCR 6; [1995] FCA 707 Sommer v Federal Commissioner of Taxation (2002) 51 ATR 102; [2002] FCA 1205 YCNM v Federal Commissioner of Taxation (2019) 110 ATR 151; [2019] AATA 1592