Yeung, W.L. v. The Commissioner of Taxation of the Commonwealth of Australia Yeung, T.F. v. The Commissioner of Taxation of the Commonwealth of Australia [1988] FCA 104

BES

JUDGMENT. No. IC4 yOS,

CATCHWORDS

INCOME TAX - - purchase of properties by parents and children as

tenants in common — whether partnership within meaning of s.6(1)d of the Act- quantum of interest held by parents in partnership -

whether interest incurred on loan deductible from assessable

income of the partnership under s.51(1) of the Act -— purpose for

which monies are borrowed.

Income Tax Assessment Act 1936 (Cth) - s.6(1), s.51(1), s.91, s.92(1) -

WEN LIN YEUNG v. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA NSW G - °

TAI FONG YEUNG v. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

NSW 62087-2089 of 1987

Davies J. 17 March 1988 Sydney

IN THE FEDERAL COURT OF AUSTRALIA

and G2087-2089 of 1987

) ) NEW SOUTH WALES DISTRICT REGISTRY ) Nos.G2084~2086 of 1987 ) )

GENERAL DIVISION

CORAM DATE PLACE

|

BETWEEN: WEN LIN YEUNG

Appellant

AND: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

BETWEEN: TAI FONG YEUNG

Appellant

lz o

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

Davies J. 17 March 1988 Sydney

MINUTES OF ORDER

THE COURT ORDERS THAT:

1.

NOTE

: The decisions on the objections relating to the individual interest of each of the applicants in the net income of the partnership "Tai Fong Yeung and Others" is affirmed.

The appeals are allowed with respect to the decisions on the objections relating to the interest incurred by the partnership to Ozanu Pty Ltd.

The matter is remitted to the respondent to amend the assessments in accordance with the reasons for judgment of the court.

Counsel may address the Court with respect to costs.

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

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

BETWEEN:

AND:

Nos.G2084-2086 of 1987 and G2087-2089 of 1987