Foxwood (Tolga) Pty Ltd v Commissioner of Taxation [1980] FCA 38

CATCHWORDS

Appeal - Deduction - Whether payment by Taxpayer to Purchaser of its business in respect of accrued entitlement of employees for long service leave and annual holiday entitlement is an outgoing of revenue - Characterization of outgoing - Liability

of Taxpayer to make the payments in question - Object or

advantage outgoing calculated to effect.

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

FOXWOOD (TOLGA) PTY. LIMITED v. THE COMMISSIONER OF TAXATION

FOR THE COMMONWEALTH OF AUSTRALIA.

QLD. No. G12 of 1978.

Coram: Deane. Fisher and Davies JJ.

Sydney.

28 March 1980.

IN THE FEDERAL COURT OF AUSTRALIA

a

NEW SOUTH WALES DISTRICT REGISTRY No. Qld. G12 of 1978.

GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF QUEENSLAND

BETWEEN: FOXWOOD (TOLGA) PTY. LIMITED

Appellant AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA Respondent Oo R DER JUDGES MAKING ORDER: Deane. Fisher and Davies JJ. DATE OF ORDER: 28 March, 1980.

WHERE MADE: Sydney

The order of the Supreme Court of Queensland is set aside

and in lieu thereof THE COURT ORDERS;

1. THAT the Appeal be allowed in relation to the Appellant's claim to deduct from its assessable income for the year ended 30 June 1976 the sum of $5,984 being that part of the payment on 30 June, 1976 which related to holiday pay and that the Taxpayer's assessment in respect of that amount be remitted to the Respondent Commissioner to be amended by allowing a deduction in that amount.

2. THAT the Respondent pay the Appellant one half of its

costs of the appeal and of the proceedings in the Supreme Court

of Queensland.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NO. Qld. G12 of 1978

wees ww

GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF QUEENSLAND

BETWEEN: FOXWOOD (TOLGA) PTY. LIMITED

Appellant.

AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA