Northern Engineering Pty Ltd v The Commissioner of Taxation [1979] FCA 137

CATCHWORDS

Income Tax - Deductions - Company - Carry forward losses - Winding down of business activity - Payment of interest on or about last day of financial year - Whether company carried on business at ail times during the year of income -

Income Tax Assessment Act 1935-1967, s.80E(1) (c).

Northern Engineering Pty.Ltd. v. The Commissioner of Taxation

No. VG17 of 1979.

Coram : Brennan, Deane and Toohey JJ.

Date : 15 November 1979,

Melbourne.

IN THE FEDERAL COURT

OF AUSTRALIA

GENERAL DIVISION

) ) ) VICTORIA DISTRICT REGISTRY ) )

BETWEEN

JUDGES MAKING ORDER

DATE OF ORDER

WHERE MADE

THE COURT ORDERS THAT

1. The appeal be dismissed.

2. The appellant pay to the respondent his costs of

this appeal.

R

No. VG17 of 1979

: NORTHERN ENGINEERING PTY.LTD.

Appellant

THE COMMISSIONER OF TAXATION

Respondent

Brennan, Deane and Toohey Ju.

15 November 1979.

Melbourne.

IN THE FEDERAL COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY No. VG17 of 1979

GENERAL DIVISION

ee ee SS

ie

BETWEEN +: NORTHERN ENGINEFRING PTY.LTD. Appellant

AND COMMISSIONER OF TAXATION

Coram : Brennan, Deane and Toohey JJ.

15 November 1979

BRENNAN J : This is an appeal from a judgment of Jenkinson J. dismissing an appeal to the Supreme Court of Victoria from

an amended assessment to tax of the appellant.

In its return of income for the financial year ended 30 June 1967 the appellant sought to deduct losses incurred in the years ended respectively 30 June 1960, 1962, 1965 and 1966. The respondent by an amended notice of assessment allowed the deduction for the losses incurred in the respective years ended 30 June 1965 and 1966 and the present appeal, relates to the deductibility of the losses incurred in the respective income years ended 30 June 1960

and 1962.

The taxpayer was, at all relevant times, a

wholly-owned subsidiary of Automotive and General Industries