North Coast Grazing Pty Ltd v. The Commissioner of Taxation of the Commonwealth of Australia [1987] FCA 310

CATCHWORDS

INCOME TAX - assessable income - item disclosed by taxpayer as non-assessable capital profit in returns - whether incorrect characterization of an item constitutes omission of assessable income resulting in a penalty under s.226(2) Income Tax Assessment Act, 1936 - whether discretion of Commissioner to

remit properly exercised pursuant to s.226(3) of the Act.

Income Tax Assessment Act, 1936 (Cth), ss.226(2), 226(3).

NORTH COAST GRAZING PTY. LIMITED v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

G.4 of 1987

Bowen C.J. Neaves J. -Burchett J.

SYDNEY-

19 June 1987

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IN THE FEDERAL COURT OF AUSTRALIA )

NEW SOUTH WALES DISTRICT REGISTRY ) No. G4 of 1987

GENERAL DIVISION )

CORAM:

DATE:

PLACE:

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

BETWEEN: NORTH COAST GRAZING PTY. LIMITED Appellant AND: THE COMMISSIONER OF

TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

BOWEN, C.J., NEAVES, BURCHETT JJ 19 June 1987

SYDNEY

MINUTE OF ORDERS

THE COURT ORDERS THAT:

(1)

(2)

The appeal be allowed.

The orders made by his Honour Mr Justice Rogers in the Supreme Court of New South Wales be set aside, so far as concerns the assessments in respect of additional tax for the years ended 30 June 1978, 1979, 1980, 1981, 1982 "and 1983, and so far as concerns the costs of the

appeals to the Supreme Court of New South Wales.

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(3)

(4)

Note:

In lieu of the orders set aside:

(a) The appeals to the Supreme Court of New South Wales be allowed to the extent of the additional tax imposed under s.226(2) of the Income Tax Assessment Act, 1936 for the years ended 30 June 1978, 1979, 1980, 1981, 1982, and 1983 amounting in all to the sum of $149,929.00, as well as to the extent of the additional tax imposed under s.226(2) for the year