The Commission of Taxation of the Commonwealth of Australia v. Harris, G.O. [1980] FCA 74

- 4 CATCHWORDS

Income tax - Assessable income - What constitutes income - Gifts - Lump sum added to pension in income year and

subsequent years.

Income Tax Assessment Act 1936, s.25.

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v. GEOFFREY OWEN HARRIS

No. VG 33 of 1979 Coram: Bowen C.J., Deane and Fisher JJ. 2 June 1980.

Sydney.

IN THE FEDERAL COURT OF AUSTRALIA)

VICTORIA DISTRICT REGISTRY No. VG 33 of 1979

GENERAL DIVISION

ON APPEAL from the Supreme Court of Victoria

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND:

GEOFFREY OWEN HARRIS

Respondent Coram: Bowen C.J., Deane and Fisher JJ. of Juud 19% REASONS FOR JUDGMENT BOWEN C.J.: The question arising in this appeal is whether a

payment of $450.00 made on 21 April 1976 by the Australia and New Zealand Banking Group Limited (hereafter referred to as "the Bank") to Geoffrey Owen Harris was assessable income in his hands. The Commissioner of Taxation (hereafter referred to as "the Commissioner") included the sum in Mr. Harris' income for the year ending 30 June 1976 and assessed tax

accordingly. Mr. Harris objected and reauested that the

matter be referred to the Taxation Board of Review. His reference was heard by Board of Review No. 1, which, by majority, upheld his objection and ordered that the assessment pe amended by deleting the item of $450.00 from his assessable income. The Commissioner appealed to the Supreme Court of Victoria, which held that the sum did not constitute assessable income. It was ordered that the appeal be dismissed and that the Commissioner pay Mr. Harris' costs.

The Commissioner sought leave to appeal to this Court and leave was granted upon an undertaking being given by the Commissioner that he would pay Mr. Harris' costs of the appeal in any event and that the order for costs made by the Supreme Court would not be disturbed.