H.W. Thompson Building Pty Ltd v Allen Property Services Pty Ltd [1983] FCA 168

CALTCHVORDS

Taxation — Appeal from assessment - Lump stems paid to taxpayers by company and by superannuation funds - Whether payment "in consequence of retirement from or termination of, any office or employment" - Whether payment an allowance, gratuity, benefit or bonus given by employer - Whether sums "paid by company to taxpayers deductible from 1ts assessable

income.

Income Tax Assessment Act, ss.26(d) (e), 78(1) (c).

PAKLAN PTY. LTO. (IN LIQUIDATION) & ORS. v. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH CF AUSTRALIA

No. VG207 of 1982 No. VG208 of 1982 Wo. VG209 of 1982 No. VG210 of 1982

Franki, Northrop and Fisher JJ. Date: 19 July 1983

Place: Nelbourne

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

) ) ) V. No. G,207 of 1982 ) )

ON APPEAL FROM THE SUPREME COURT OF VICTQRIA

BETWEEN: PAKLAN PTY. LTD. Appellant Tin Liquidation) (Appellant) 7" and THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent . (Respondent) ORDER CORAM: Franki, Northrop and Fisher JJ, WHERE MADE: Melbourne DATE: 19 July 1983

THE COURT ORDERS THAT:

The appeal be allowed.

The order of the Supreme Court of Victoria be set aside.

The assessment be remitted to the Commissioner of Taxation for the purpose of enabling him to form an opinion as required by

s.78({1)(c) of the Income Tax Assessment Act 1936 of the extent

to which the payments to the four employees by way of retiring allowances in the sums amounting in all to $40,000 were paid in good faith in the business operations which were carried on by the taxpayer for the purpose of gaining or producing assessable income, and to be re-assessed accordingly.

The respondent pay one half of the appellant's costs of the

appeal and of the hearing in the Supreme Court of Victoria.

3,,THE FEDERAL COURT OF AUSTRALIA

) ) VICTORIA DISTRICT REGISTRY ) V,. No, G.208 of 1982 ) )