Insomnia (No. 2) Pty Ltd & Anor v. The Commissioner of Taxation [1987] FCA 8

INCOME TAX - Allowable deductions - Curran scheme - Claim for deduction of share of loss alleged to have been incurred by

partnership on share trading ~ Bonus snares issued by private companies in satisfaction of dividends declared out of capital

reserves - Whether partnership entitled to the dividends -

Whether partnership engaged 1n business of trading 1n shares - Whether shares trading stock - No sale of shares effected in

financial year - No evidence that partnership had valued shares at market selling value - Other deficiencies in carrying out the scheme - Deduction not allowed.

Income Tax Assessment Act 1936 (Cth), ss.28, 31, 51, 932

INSOMNTA (No.2) PTY. LIMITED and INSOMNIA (No.3) PTY. LIMITED v. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

VG 57 of 1986

Fisher, Lockhart and Neaves JJ. 17 February 1987

Adelaide

iy

IN THE FEDERAL COURT OF AUSTRALIA

No. V G 57 of 1986

VICTORTA DISTRICT REGISTRY

wee we ew

GENERAL DIVISION

ON APPEAL FROM THE SUPREME COURT OF VICTORIA

BETWEEN : INSOMNIA (No.2) PTY.LIMITED and INSOMNIA (No.3) PTY.

LIMITED

Appellants

AND: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

MINUTE OF ORDER

JUDGES MAKING ORDER

Fisher, Lockhart and Neaves JJ.

DATE OF ORDER : 17 February 1987 WHERE MADE : Adelaide

THE COURT ORDERS THAT:

1. The appeals be dismissed. 2. The appellants pay the respondent's costs of the appeals.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY No. V G 57 of 1986