The Commissioner of Taxation v. Sealy, V.E. [1987] FCA 756

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JUDGMENT No. 796. [Bilan

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CATCHWORODS

INCOME TAX - payment in lieu of long service leave - employment of managing partner terminated - whether in "employment" - whether obligation to pay - whether payment a "privilege" - whether position of managing partner an "office".

CONTRACT - partnership agrees to employ one partner - whether contract between partnership and partner.

Income Tax Assessment Act 1936 s.26AD Property Law Act 1974 (Q.), s.50 Industrial Conciliation and Arbitration Act 1961 (Q.)

The Commissioner of Taxation of the Commonwalth of Australia v. Victor Eric Sealy Qld G68 of 1987

PINCUS J. BRISBANE 10 DECEMBER 1987

IN THE FEDERAL COURT OF AUSTRALIA )

QUEENSLAND DISTRICT REGISTRY ) QLD G68 of 1987 GENERAL DIVISION )

ON APPEAL FROM THE TAXATION APPEALS DIVISION OF THE ADMINISTRATIVE APPEALS TRIBUNAL

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Applicant AND: VICTOR ERIC SEALY

Respondent

MINUTES OF ORDER

JUDGE MAKING ORDER: PINCUS J. DATE OF ORDER: 10 DECEMBER 1987

WHERE MADE: BRISBANE

THE COURT ORDERS THAT:

The appeal be dismissed.

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

IN THE FEDERAL COURT OF AUSTRALIA )

QUEENSLAND DISTRICT REGISTRY ) QLD G68 of 1987 GENERAL DIVISION )

ON_APPEAL FROM THE TAXATION APPEALS DIVISION OF THE

ADMINISTRATIVE APPEALS TRIBUNAL

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Applicant AND: VICTOR ERIC SEALY

Respondent

PINCUS J. 10 DECEMBER 1987

REASONS FOR JUDGMENT

This is an appeal from the Administrative Appeals Tribunal in an income tax matter. The issue in the case is one of taxation of payments in lieu of long service leave, under' s.26AD of the Income Tax Assessment Act 1936. More particularly, the questions involved relate to the meaning of the word "office" in sub-section (1) and the word "privilege" in sub-section (8) of