Krakos Investments Pty Ltd v Deputy Commissioner of Taxation [1995] FCA 413

CATCHWORDS INCOME TAX - capital gains - objection against assessment - whether the sum or part of the sum paid for the goodwill of a business was a premium paid for the grant of the lease of the premises - nature of a lease premium - is goodwill property? - the nature of goodwill - local goodwill - whether a premium paid for the lease. LANDLORD AND TENANT - nature of premium paid for the grant of a lease - whether payment for local goodwill amounts to a premium. PERSONAL PROPERTY - whether goodwill is personal property - nature of local goodwill - whether it passes with the right to occupy the land. Income Tax Assessment Act ss 160A, 160Z(1), 160ZO(1), 160ZS(1), 160ZZR(1) Taxation Administration Act 1953 ss 14ZQ, 14ZZO(b)(1) Nixon v Doney [1961] SR (NSW) 311 at 316 The Commissioners of Inland Revenue v Muller & Co.'s Margarine Limited [1901] AC 217 at 223, 224 and 230 Warman International Ltd v Dwyer (1995) 128 ALR 201 Box v Federal Commissioner of Taxation (1952) 86 CLR 387 at 397 and 398 West London Syndicate Limited v Commissioners of Inland Revenue [1898] 2 QB 507 at 513-514 Tooth & Co Ltd v The Commissioner of Stamp Duties [1909] 9 SR (NSW) 652 at 668 Daniell v Federal Commissioner of Taxation (1928) 42 CLR 296 at 302-303 Federal Commissioner of Taxation v Williamson (1943) 67 CLR 561 at 563 and 564 J B Chandler Investment Company Limited v Federal Commissioner of Taxation (1993) 47 FCR 588 at 598 No. SG 86 of 1993 KRAKOS INVESTMENTS PTY LIMITED v DEPUTY COMMISSIONER OF TAXATION Branson J. Adelaide 21 June 1995

IN THE FEDERAL COURT OF AUSTRALIA) ) SOUTH AUSTRALIA DISTRICT REGISTRY) No. SG 86 of 1993 ) GENERAL DIVISION ) BETWEEN: KRAKOS INVESTMENTS PTY LIMITED Applicant - and - DEPUTY COMMISSIONER OF TAXATION Respondent MINUTES OF ORDER CORAM : Branson J. PLACE : Adelaide DATE : 21 June 1995 THE COURT ORDERS THAT: 1. The assessment of the applicant for the year ending 30 June 1990 be remitted to the respondent to be amended in accordance with the law. 2. The respondent pay the applicant's costs of the application. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules