Placer Pacific Management Pty Ltd v Commissioner of Taxation [1995] FCA 475

CATCHWORDS

INCOME TAX - Allowable Deductions - settlement of claim arising from business operation which had ceased - occasion of outgoing found in the business operation directed towards the gaining or production of assessable income generally - Income Tax Assessment Act s51(1). Income Tax Assessment Act (1936): ss51(1), 169A Administrative Appeals Tribunal Act (1975): s44(1) Amalgamated Zinc (De Bavay's) Ltd v Federal Commissioner of Taxation (1935) 54 CLR 295; discussed. AGC (Advances) Ltd v Federal Commissioner of Taxation (1975) 132 CLR 175; discussed. Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47; discussed. Commissioner of Taxation v Finn (1961) 106 CLR 60; discussed. Commissioner of Taxation v EA Marr & Sons (Sales) Ltd (1984) 2 FCR 326; discussed. Inglis v Federal Commissioner of Taxation (1979) 28 ALR 425; distinguished. Paklan Pty Ltd (In Liq) v Federal Commissioner of Taxation (1983) 67 FLR 328; distinguished. Hope v Bathurst City Council (1980) 144 CLR 1; referred to. Collector of Customs v Pozzolanic Enterprises Pty Ltd (1993) 43 FCR 280; referred to.

PLACER PACIFIC MANAGEMENT PTY LTD v COMMISSIONER OF TAXATION No NG17 of 1995 CORAM: DAVIES, HILL & SACKVILLE JJ PLACE: SYDNEY DATED: 7 JULY 1995

IN THE FEDERAL COURT OF AUSTRALIA ) ) NEW SOUTH WALES DISTRICT REGISTRY ) No NG17 of 1995 ) GENERAL DIVISION )

ON APPEAL FROM THE TAXATION APPEALS DIVISION OF THE ADMINISTRATIVE APPEALS TRIBUNAL BETWEEN: PLACER PACIFIC MANAGEMENT PTY LIMITED Applicant AND: COMMISSIONER OF TAXATION Respondent

CORAM: DAVIES, HILL AND SACKVILLE JJ PLACE: SYDNEY DATED: 7 JULY 1995

MINUTES OF ORDER THE COURT ORDERS THAT:

(1) The appeal be allowed. (2) The Decision of the Administrative Appeals Tribunal be set aside and in lieu thereof it be ordered that: (i) The Commissioner's objection decision be set aside and in lieu thereof the objection as to the disallowance of the deduction of $383,379 in the substituted accounting period ended 31 December 1989 be upheld. (ii)The matter be remitted to the Commissioner of Taxation for reassessment accordingly. (3) The respondent pay the applicant's costs of the appeal.