Tupicoff, Gary v The Commissioner of Taxation [1984] FCA 382

CATCHWORDS

INCOME TAX - Assessable Income - Taxpayer an Insurance Agent - Taxpayer restructuring activities 30 as to secure tax advantages

- Incorporation of company - Taxpayer employed as "approved representative" of company - Family Trust - Income Splitting - Whether arrangements void as against Commissioner - whether taxpayer exercising "choice" principle - Ordinary business or

family dealing - Consequences of s.260 - Source of income.

Income Tax Assessment Act 1936 ss.260, 19

GARY _TUPICOFF Vv THE COMMISSIONER OF TAXATION

Fisher, Jenkinson and Beaumont JJ.

Melbourne

21 November 1984.

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY GENERAL DIVISION

NO.G62 of 1984

BETWEEN:

GARY TUPICOFF Appellant

- and -

THR COMMISSIONER OF

TAXATION Respondent ORDER JUDGES MAKING ORDER 3 Fisher, Jenkinson & Beaumont JJ. WHERE MADE : Melbourne DATE : 21 November 1984

THE COURT ORDERS THAT:

1. The appeal be dismissed.

2. The Appellant Gary Tupicoff pay to the Respondent his costs of the appeal.

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND _ DISTRICT REGISTRY GENERAL DIVISION

NO. G62 of 1984

ON APPEAL FROM THE SUPREME COURT OF QUEENSLAND

BETWEEN:

GARY TUPICOFF:

Appellant

-and-

THE COMMISSIONER OF TAXATION

Respondent

CORAM: Fisher, Jenkinson and Beaumont JJ. 21 November 1984

REASONS FOR JUDGMENT

FISHER J.: In this matter I have had the advantage of perusing in draft form the reasons of Beaumont J. I agree with his conclusion that the appeal should be dismissed and generally with his reasons. There is no need for me to restate the facts and I propose only to make observations on the application of s.260 of

the Income Tax Assessment Act 1936 ("the Act") to the taxpayer's

arrangements.

Counsel for the taxpayer sought to avoid the application

of the section primarily on the ground that the overt acts

constituting the arrangements were explicable as ordinary