Gulland, Ian Ferris v Commissioner of Taxation of the Commonwealth of Australia [1984] FCA 227

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

No. G31 of 1983

On APPEAL FROM THE SUPREME COURT OF WESTERN AUSTRALIA

BETWEEN:

IAN FERRIS GULLAND Appellant

- and -

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

CORRIGENODA

Fisher J:

Seven lines from the bottom "Division" should read "Part"

I. Tokley Associate to Fisher J.

1Yy a 4%.

Cd Y

Income Tax - assessable income - avoidance of tax - doctor previously operating as sole practitioner - creation of unit trust to purchase practice and employ doctor - objective purpose of arrangement - relevance of taxpayer's evidence - potential for incone splitting - whether one of the main purposes - consideration of the "choice principle" - whether incidence of taxation altered - existence of antecedent transaction - whether

ordinary family or business dealing

Income Tax Assessment Act 1936, ss. 82AAC, 260

IAN FERRIS GULLAND v. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

No. WA G31 of 1983

CORAM: Rowen C.J., Toohey & Fisher JJ.

Perth 3 August 1984

IN THE FEDERAL COURT OF AUSTRALIA WESTERN AUSTRALIA DISTRICT REGISTRY GENERAL DIVISION

JUDGES MAKING ORDER DATE OF _ ORD! WHERE MADE

No. WA G31 of 1983

ON APPEAL FROM THE SUPREME COURT OF WESTERN AUSTRALIA

BETWEEN:

IAN FERRIS GULLAND Appellant

and

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

Bowen C.J., Toohey & Fisher JJ.

3 August 1984

Perth

THE COURT ORDERS THAT:

The appeal be allowed.

The judgment of the Supreme Court of Western Australia be set aside and in lieu thereof the

appeal to that Court be allowed.

The Commissioner of Taxation's assessment of income tax for the year ended 30 June 1979 be amended by

excising from allowable losses the sum of $3,109.

The Commissioner of Taxation pay to Ian Ferris

Gulland his costs of the appeal to this Court and