The Commissioner of Taxation of the Commonwealth of Australia v. Total Holdings (Australia) Pty Ltd [1979] FCA 53

Income Tax - Deductions - Interest paid by the taxpayer to its parent company upon moneys Sorrowed by the taxpayer — Carry forward of loss by the taxpayer disallowed by the Commissioner ~ Losses carricd forward representing interest paid to the parent company of the taxpayer on so much of the advances by the

parent company to the taxpayer as were subsequently lent by

the taxpayer to a subsidiary interest free - Whether payment

of anterest for the purpose of furthering present or prospective amcome producing activities 1s deductible under s. 51 of the

Income Tax Assessment Act 1936

Evidence - proper use to be made of facis subsequent to the

year of assessment

CORAM: NORTHROP, FISHER & LOCKHART JJ SYDNEY

13 JUNE 1979

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A IT te eeamlne o emO

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RSL ae aed 2

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IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY No. G77 of 1978.

GENERAL DIVISION

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Appellant

and

TOTAL HOLDINGS (AUSTRALIA) PTY.LTD. Respondent

ORDER. JUDCES MAKING ORDER: Northrop,Fisher and Lockhart JJ. DATE OF ORDER: 13 June, 1979 WHERE MADE: Sydney ORDER: Appeal dismissed with costs.

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ROSE rT ea wee Sr

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IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY No. G 77 of 1978

GENERAL DIVISION

BETWEEN:

THE COMMISSIONER OF TAXATION OF TIIE

COMMONWEALTH OF AUSTRALIA Appellant and TOTAL HOLDINGS (AUSTRALIA) PTY. LTD. Respondent NORTHROP J. REASONS FOR JUDGMENT 13 June,1979.

In my opinion the appeal should be dismissed with costs. I concur in the reasons for judgment given by Lockhart J. and have nothing to add.

pa a

HY certify that this and—tha és

pet a tiue copy of the Eeasons for Judgment hesein of the

Honomable Mr. Justice boehof?

v PI Assgtiale

Dated: (8.

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ay

IN THE FEDERAL COURT OF AUSTRALIA