Commissioner of Taxation of the Commonwealth of Australia v E.A. Marr & Sons (Sales) Ltd [1984] FCA 225

CATCHWORDS

Income Tax - Allowable deductions - Plant and machinerv leased by

taxpayer from finance companies - Such items used or sub~leased

by subsidiaries - No income derived by taxpaver from such transactions - Default under leases - Receivers and manaqers appointed - Proofs of debt lodged respectina deficiencies - Payment by receivers - Whether leasing activities part of taxpayer's business - Whether taxpaver hoped to derive lona term

profit - Whether nexus between carrying on business and payments

- Whether payments of capital or revenue nature.

income Tax Assessment Act 1936 sub-s.S1(1).

COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v E.A. MARR AND SONS (SALES) LIMITED

N.

wm

-W. G15.of 1983. N.S.W. G398-399 of 1983

CORAM: Bowen C.J., Toohey and Lockhart JJ. 3 August 1984

Sydney

IN THE FEDERAL COURT OF AUSTRLAIA

No. G15 of 1983 No. G398 of 1983 No. G399 of 1983

NEW SOUTH WALES DISTRICT REGISTRY

-~ew rw

GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES ADMINISTRATIVE LAW DIVISION

BETWEEN; THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant AND: E.A. MARR & SONS (SALEC) LID.

Respondent

JUDGES MAKING OPDER: Bowen C.J., Toohey and Lockhart JJ. DATE OF ORDER : 3 August 1984

WHERE MADE: Svdney

THE COURT ORDERS THAT: 1. The appeals be dismissed. 2. The Commissioner of Taxation of the Commonwealth of

Australia pay to E.A. Marr and Sons (Sales) Limited its

costs of the appeals.

IN THE FEDERAL COURT OF ADSTRLALA )

) No. G15 of 1983 NEW SOUTH WALES DISTRICT REGISTRY ) No. G298 of 198? ) )

No. G399 of 1983 GENEPAL DIVISTON

ON APPEAL FPOM THE SUPPEME COURT OF NEW SOUTH WALES ADMINISTRATIVE, LAW DIVISTON

BETWEEN : THE COMMISSIONER OF TAMATION OF THE COMMONWEALTH OF AUSTPALIA Appellant AND: B.A. MARR & SONS (SALES) LID. Respondent

Bowen C.dJ.. Toohey and Lockhart JJ. 3 August 19984