Ure, Richard Michael v. The Commissioner of Taxation of the Commonwealth of Australia [1981] FCA 5

CATCHWORDS

Income tax - Allowable deductions ~ Moneys borrowed by taxpayer and on-lent at lower rate of interest - Funds ultimately applied for allegedly private or domestic purposes - Deductibility of expenses in borrowing money and of interest payable.

Income Tax Assessment Act 1936 (Cth.), ss.51,87.

Richard Michael Ure v. The Commissioner of Taxation of the Commonwealth of Australia

No. G52 of 1980.

Coram : Brennan, Deane and Sheppard JJ.

11 February 1981.

Sydney.

v

IN THE FEDERAL COURT OF AUSTRALIA }

)

NEW SOUTH WALES DISTPICT REGISTRY ) No. G52 or 1980 )

GENERAL DIVISICN )

ON APPEAL FROM THE SUPREME COURT CF NLW SOUTH WALES ADMINISTRATIVE LAW DIVISTON

BETWEEN : RICHARD MICHARL UFE Appellant AND : THE COMMISSTONER CF TAXATION OF THE COMMONWEALTH CU AUSTRALTA Pespondent ORDER JUDGES MAKING ORDER : Brennan, Deane and Sheppard JJ. DATE OF ORDER : 11 February 1981. WHERE MADE : Sydney.

THE COUPT ORDERS THAT

i. The appeal be allowed. 2. The order of the Supreme Court of New South "ales be set aside and in lieu thereof it be ordered that: (a) The assessment be remitted to the Commissioner to be amended by allowing a deduction pursuant to $.67(1) of the Income Tax Assessment Act 1936 in respect of tre appropriate proportion of guarantee fees, valuation fees and legal expenses and that the appeal be otherwise dismissed. (b) The appellant pay to the respondent one-third of the respondent's costs to be taxed.

3. The appellant pay to the respondent one-thire of the

respondent's costs of this appeal.

IN THE FEDERAL COUPT OF AUSTRALTA

No.

m7 an

2? oF 19293

) ) NEW SOUTH WALES DISTRICT REGISTPY ) ) )

GENERAL DIVISION

ON APPEAL FROM TEE SUPPEM™T COURT OT RW SOUTH WALTS ADMINISTRATIVE LAw JLVISTON

BETWEEN : RICHARD MICHALTL URZ Appellant

AND =: THE COMMISSIONER OF TAé THE COMMONWUALTH OF AUST

AT ecN OT

dem

Respondant