McCauley, B v Commissioner of Taxation [1988] FCA 390

Suwa." ts, BIOs BE

CATCHWORDS

INCOME TAX - assessments issued on basis of assets betterment statement - taxpayer's case that sole source of increase in assets was betting wins - whether established that excess of betting wins over losses could account for otherwise unexplained increment in taxpayer's assets - burden upon taxpayer of establishing that amount of taxable income for which he has been assessed exceeds actual taxable income derived during the year of income - effect of absence of

records upon taxpayer's case.

Income Tax Assessment Act 1936: ss. 166, 167, 177, 190.

BRUCE McCAULEY v THE COMMISSIONER OF TAXATION FOR THE

COMMONWEALTH OF AUSTRALIA

NG2093 - NG2099 of 1987 = aoe LOCKHART J. 22 JULY 1988

SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION

No. NG2093 - 2099 of 1987

BETWEEN: BRUCE McCCAULEY Appellant AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA Respondent JUDGE MAKING ORDER: LOCKHART J. DATE ORDER MADE: 22 JULY 1988 WHERE ORDER MADE: SYDNEY

MINUTES OF ORDER

THE COURT ORDERS THAT:

1. Each of the seven appeals NG2093 - NG2099 of 1987 be

dismissed.

2. The applicant pay the costs of the respondent of this

proceeding including any reserved costs.

NOTE: 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 ) No. NG2093 — 2099 of 1987 ) )

GENERAL DIVISION

BETWEEN: BRUCE McCAULEY Appellant AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA Respondent

22 July 1988

REASONS FOR JUDGMENT

LOCKHART J.

In these seven appeals, being heard together by consent, Bruce McCauley ("the taxpayer") disputes the correctness of certain assessments which were made by the Commissioner following an investigation of his affairs. The assessments are for each of the years ended 30 June 1970 to 30 June 1976 inclusive and each of the seven years is the subject of a separate appeal. The assessments are based onan assets betterment statement or, as it is sometimes called, an accretion of assets statement. The Commissioner assessed the taxpayer to tax on the basis that during each year of income there was an increase in the taxpayer's assets, the source of which was unexplained by the amounts of income returned by