Gandy Timbers Pty Ltd v Commissioner of Taxation [1995] FCA 97

CATCHWORDS INCOME TAX - allowable deductions - payment of premiums for insurance bonds by employer company to provide for lump sum payments to employees - indemnity agreement with associated company - legal expenses - whether premiums and legal expenses deductible. Income Tax Assessment Act 1936, s.51(1) Hallstroms v Federal Commissioner of Taxation (1946) 72 CLR 634 at 648. Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47 at 55-6 Federal Commissioner of Taxation v Foxwood (Tolga) Pty Ltd (1981) 147 CLR 278 at 285, 293 Fletcher v The Commissioner of Taxation (1991) 173 CLR 1 at 18-19 Magna Alloys and Research Pty Ltd v Federal Commissioner of Taxation (1980) 33 ALR 213 at 233 Federal Commissioner of Taxation v Snowden and Willson (1958) 99 CLR 431 at 444 and 437 Ransburg Australia Pty Ltd v Federal Commissioner of Taxation (1980) 29 ALR 433 at 436 Nilsen Development Laboratories Pty Ltd v Federal Commissioner of Taxation (1981) 144 CLR 616 at 623-5. W Nevill & Co Ltd v Federal Commissioner of Taxation (1937) 56 CLR 290 at 302 Federal Commissioner of Taxation v James Flood Pty Ltd (1953) 88 CLR 492 at 507 Nilsen Development Laboratories Pty Ltd v Federal Commissioner of Taxation (1981) 144 CLR 616 at 624, 627 and 631 Coles Myer Finance Ltd v Federal Commissioner of Taxation (1993) 176 CLR 640 at 663 GANDY TIMBERS PTY LTD v COMMISSIONER OF TAXATION NO. WAG 18 OF 1994 R D NICHOLSON J. PERTH 8 MARCH 1995

IN THE FEDERAL COURT OF AUSTRALIA) WESTERN AUSTRALIA DISTRICT REGISTRY) GENERAL DIVISION ) NO. WAG 18 OF 1994 B E T W E E N: GANDY TIMBERS PTY LTD Applicant and COMMISSIONER OF TAXATION Respondent MINUTE OF ORDER JUDGE MAKING ORDER: R D NICHOLSON J. DATE OF ORDER: 8 MARCH 1995 WHERE MADE: PERTH THE COURT ORDERS THAT: (1) The appeal be dismissed (2) The applicant pay the respondent's costs including the costs reserved. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.