Commissioner of Taxation of the Commonwealth of Australia v National Commerical Banking Corporation of Australia Ltd [1983] FCA 336

CATCHWORDS

Income Tax - Allowable Deductions - Bad debts - Interest on loans in ordinary course of business credited to suspended unterest account when debts thought doubtful and written-off when they became bad - Interest not brought to account by Bank as assessable income - Change of accountancy procedure - Whether available as source of deduction under sub-s.63(1)

or sub-s.51(1) - Whether interest 1s "1n respect of money lent".

Income Tax - Assessable income - Lump sum payments made by new members to old members of Bankcard Scheme - Whether payments are income in hands of old members ~ Whether payments are

reimbursement of expenses previously claimed as deductions.

COMMISSIONER OF TAXATION OF COMMONWEALTH v NATIONAL COMMERCIAL

BANKING CORPORATION OF AUSTRALIA LIMITED

Nos. G119 of 1983, G288-290 of 1983.

Bowen C.J., Fisher and Lockhart J.J.

Sydney

15 November 1983

"?

IN THE FEDERAL COURT OF AUSTRALIA

No. NSW G119 of 1983 No. NSW G288 of 1983 No. NSW G289 of 1983 No. NSW G290 of 1983

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

BETWEEN : COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Appellant AND: NATIONAL COMMERCIAL BANKING CORPORATION OF AUSTRALIA LIMITED Respondent ORDER Judges Making Order: Bowen C.J., Fisher and Lockhart J.J. Date of Order: 15 November 1983 Where Made: Sydney THE COURT ORDERS THAT: 1. The appeals be dismissed. 2. The Commissioner of Taxation of the Commonwealth of

Australia pay to the National Commercial Banking

Corporation of Australia Limited its costs of the appeal.

IN THE FEDERAL COURT OF AUSTRALIA

) > No. G119 of 1983 NEW SQUTH WALES DISTRICT REGISTRY >) No. G288 of 1983 ) )

No. G23 af 1983

GENERAL [DT IVISTON No. G290 of 1983

RETWEEN COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND NATIQNAL COMMERCIAL BANKING CORPORATION OF AUSTRALIA LIMITED