Ransburg Australia Pty Ltd v Commissioner of Taxation [1980] FCA 37

3 | CATCHWORDS

Appeal - Deduction - Payments by Taxpayer to a Company upon terms

of agreements whereby the Company agreed to indemnify the

Taxpayer against its liability to its employees for holiday and

long service leave pay in succeeding years - Determination of the

true character and effect of the payments - Whether the payments

were made on revenue account by way of consideration for an

indemnity or whether made as an investment on capital account.

Income Tax Assessment Act 1936 s.51(1).

RANSBURG AUSTRALIA PTY. LIMITED v. FOR THE COMMONWEALTH OF AUSTRALIA.

No. G18 of 1979.

TH

E COMMISSIONER OF TAXATION

Coram: Deane, Fisher and Lockhart JJ.

Sydney.

28 March 1980.

IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY No. G18 of 1979. GENERAL DIVISION )

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES

BETWEEN: RANSBURG AUSTRALIA PTY.

LIMITED Appellant. D: THE COMMISSIONER OF TAXATTON FOR THE COMMONWEALTH OF AUSTRALIA. Respoadent. O R DER JUDGES MAKING ORDER: Deane, Fisher and Lockhart JJ. DATE OF ORDER: 28 March 1980.

WHERE MADE: Sydney THE COURT ORDERS THAT:

1. Appeals dismissed

2. Appellant to pay respondent's cost of the appeal.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NO. G18 of 1979

ee we

GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES

BETWEEN: RANSBURG AUSTRALIA PTY. LIMITED

Appellant.

AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA

Respondent

CORAM : Deane, Fisher and Lockhart Jd.

Friday 28 March, 1980.

REASONS FOR JUDGMENT

DEANE J: The context in which these appeals fall to be determined

appears from the judgment of Fisher J. which I have had the benefit of reading. I agree, for the reasons which he gives, with

Fisher J's conclusion that the outgoings in issue were outgoings

of capital and were, for that reason, not properly deductible