Crow, D.M. v Commissioner of Taxation [1988] FCA 447

JUDGMENT No. 4427./..8%....

CATCHWORDS

Whether profit deemed from subdivision and sale of land™=Was

included in assessable income of taxpayer pursuant to sub-s.

25(1) or s. 26(a) of the Income Tax Assessment Act — purchase

of areas of farming land and subsequent sale of portions of such land - whether business of land development was carried on by the taxpayer - whether s. 26(a) brought to tax profits on land sales if proceeds were not ordinary income under sub-s. 25(1) - profit-making undertaking or scheme -

taxpayer's purpose —- relevance of business element in

undertaking or scheme.

Income Tax Assessment Act 1936 (Cth): ss. 25, 26{a)

DONALD MURRAY CROW v THE COMMISSIONER OF TAXATION FOR THE

COMMONWEALTH OF AUSTRALIA

TG2013 of 1987 762014 of 1987 TG2015 of 1987 TG2016 of 1987

LOCKHART J. 17 AuGUST 1988 SYDNEY

ee,

IN THE FEDERAL COURT OF AUSTRALIA

WHERE ORDER MADE:

SYDNEY

MINUTE OF ORDERS

THE COURT ORDERS THAT:

1. fhe four appeals be dismissed.

2. The appellant pay the costs

four appeals.

) ) TASMANIAN DISTRICT REGISTRY ) No. 762013 of 1987 rs ) TG2014 of 1987 GENERAL DIVISION ) TG2015 of 1987 a TG2016 of 1987 BETWEEN: DONALD MURRAY CROW Applicant AND: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA Respondent JUDGE MAKING ORDER: LOCKHART J. DATE OF ORDER: 17 AUGUST 1988

of the respondent of the

NOTE: Settlement and entry of orders is dealt with in Order

36 of the Federal Court Rules.

wee ee et ee rs '

IN THE FEDERAL COURT OF AUSTRALIA TASMANIAN DISTRICT REGISTRY

No. TG2013 of 1987 TG2014 of 1987 TG2015 of 1987 TG2016 of 1987

GENERAL DIVISION

BETWEEN: DONALD MURRAY CROW

Applicant D: THE COMMISSIONER OF TAXATION FOR THE

COMMONWEALTH OF AUSTRALIA

Respondent

17 August 1988 REASONS FOR JUDGMENT

LOCKHART J.

The question in these four appeals is whether sub-s.

25(1) or s. 26(a) of the Income Tax Assessment Act 1936 ("the