Commissioner of Taxation v. Top of the Cross Pty Ltd & Anor [1981] FCA 192

| If.

f

CATCHWORDS

Income tax - Deduction claimed for expenditure on airport hotel - Taxpayer successful tenderer for construction of hotel ~ Whether contractual arrangements constituted franchise for

purposes of section 62A of Income Tax (Assessment) Act 1936.

Income Tax (Assessment) Act 1936, s.62A

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Vv. TOP OF THE CROSS PTY. LIMITED and TRAVEL HOLDINGS (AUSTRALIA) PTY. LIMITED

N.S.W. No. G3 of 1981

Bowen C.J., Deane and Ellicott JJ.

6 November 1981.

Sydney.

IN THE FEDERAL COURT OF AUSTRALIA)

) NEW SOUTH WALES DISTRICT REGISTRY) No. G3 of 1981

) GENERAL DIVISION )

ON APPEAL from the Supreme Court of New South Wales

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND:

TOP OF THE CROSS PTY. LIMITED and TRAVEL HOLDINGS (AUSTRALIA) PTY.

LIMITED Respondents ORDER JUDGES MAKING ORDER: Bowen C.J., Deane and Ellicott Jd. DATE OF ORDER: 6 November 1981. WHERE MADE: Sydney.

THE COURT ORDERS THAT the appeal be dismissed with costs.

IN THE FEDERAL COURT OF AUSTRALIA)

) NEW SOUTH WALES DISTRICT REGISTRY) No. G3 of 1981

) GENERAL DIVISION )

ON APPEAL from the Supreme Court of New South Wales

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND:

TOP OF THE CROSS PTY. LIMITED and TRAVEL HOLDINGS (AUSTRALIA) PTY.

LIMITED Respondents CORAM: Bowen C.J., Deane and Ellicott JJ. 6 November 1981. REASONS FOR JUDGMENT BOWEN C.J. and ELLICOTT J.: This 1s an appeal by the

Commissioner of Taxation from a decision of the Supreme Court of New South Wales. Travel Holdings (Australia) Pty. Limited objected to its assessments for the years ended 30 June 1975 and 1976 (No.681 of 1979) claiming the Commissioner had wrongly disallowed its claims for a deduction under s.62A of

the Income Tax Assessment Act 1936 and when its objections