Australian National Hotels Ltd v Commissioner of Taxation [1988] FCA 470

JUDGMENT No. 4:7.9/..88.....

CATCHWORDS

INCOME TAX - Deductions under s.51(1) - Whether, where taxpayer borrowed foreign currency for capital purposes, premiums in respect of insurance against loss by adverse exchange movement were deductible on revenue account or were of a capital nature -

Whether it was open to the trial Judge to hold that premiums had been "incurred" in the relevant year - Whether s.260 applied.

Income Tax Assessment Act 1936 (C'wlth) ss.51(1), 260

AUSTRALIAN NATIONAL HOTELS LIMITED —V- THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

NSW G.581 of 1987 NSW G.678 of 1987 NSW G.679 of 1987

Bowen C.J., Pincus and Burchett JJ. Sydney ' 18 August 1988

RECEIVED 18 AUG 1988

AL COURT OF FeO STRALIA

RINCIPAL TEGISTRY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY ) No. G.581 of 1987 ) GENERAL DIVISION )

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES

BETWEEN:

AUSTRALIAN NATIONAL HOTELS LIMITED

Appellant

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

CORAM: Bowen C.J., Pincus & Burchett JJ. DATE: 18 August 1988 ' PLACE: Sydney

MINUTE OF ORDERS OF THE COURT

THE COURT ORDERS THAT: (1) The appeal be allowed.

(2) The orders made in the Supreme Court of New South Wales be set aside.

(3) In lieu of the orders set aside:

(a) the appeal to the Supreme Court of New South Wales be allowed;

(b) the appellant's income tax assessment for the financial year ending 31 July 1976 be remitted to the respondent to be dealt with according to law;

(c) the respondent pay the appellant's costs in the Supreme Court of New South Wales.

(4) The respondent pay the appelilant's costs of this appeal.

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. G.678 of 1987 ) )