Commissioner of Taxation v Pincus, David Fabian [1984] FCA 315

CATCHWORODS

INCOME TAX - Assessable income - Taxpayer a medical practitioner - Partnership practice restructured to secure tax advantages - Practice split and sold to two unit trusts - Taxpayer emploved by trustee of a unit trust - Family trust buying units in trust employing taxpayer - Income splitting - Whether arrangements void as against Commissioner - Consequences of such avoidance - Whether issue of -amended assessment authorised - Whether full

and true disclosure made.

INCOME TAX ASSESSMENT ACT 1936 55.260, 179, 19.

THE COMMISSIONER OF TAXATION v DAVID FABSAN PINCUS

Fox, Fisher and Beaumont Jd. 5 October 1984

Sydney.

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY GENERAL DIVISION

NO. G44 OF 1984

wee ww

«

Pa, ON APPEAL -FROM THE SUPREME COURT OF

QUEENSLAND BETWEEN;

TF THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant - and -

DAVID FABIAN PINCUS

Respondent ORDER JUDGES MAKING ORDER : Fox, Fisher & Beaumonc Jd. WHERE MADE : Svdney DATE : & Octoper 1984. THE cOURT ORDERS THAT: 1. The appeal of the Commissioner of Taxation be allowed. 2. The cross-appeal of the taxpayer David Fabian Pincus be dismissed. 3. The amended assessment of the Commissioner of Taxation

adding to the taxable income of the taxpayer the sum of $14,404 be confirmed.

4, The taxpayer pay to the Commissioner of Taxation his

2.

costs of the appeal and cross-appeal

of the hearing in the Supreme Court.

in this Court and

IN THE FEDERAL COURT OF AUSTRALIA

} ) QUEENSLAND DISTRICT REGISTRY ) NO. G44 OF 1984 ) GENERAL DIVISION )

QN APPEAL FROM THE SUPREME COURT OF

QUEENSLAND

BETWEEN;

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALTA

Appellant - and -

DAVID FABIAN PINCUS

Respondent CORAM: Fox. Fisher ard Beaumont Jd. 5 October 1984 REASONS FOR JUDGMENT The Court: This 1S an appeal by the Commissioner cr Taxation of the Commonwealth of Australia ("the Commissioner") against a