Richard Walter Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [1995] FCA 480

CATCHWORDS INCOME TAX - appeals from Commissioner of Taxation's decisions to disallow applicant's objections - whether determinations of Commissioner should be varied to exclude certain sums from applicant's assessable income - whether certain loan transactions a sham - discussion of principles - whether transactions void against Commissioner by s 260 Income Tax Assessment Act 1936 (Cth) - whether loans stood independently of and were not included in the scheme avoided by s 260 - whether s 260 is a provision which annihilates but does not permit the Commissioner to reconstruct a new and fictitious set of facts creating a liability in the taxpayer. INCOME TAX - claim for deduction in respect of a bad debt - whether amount claimed as a bad debt was a bad debt within s 63(1)(b) Income Tax Assessment Act 1936 - whether debt was in respect of money lent in the ordinary course of the business of lending money - whether applicant carrying on a business of lending money - whether loan made in ordinary course of such a business - whether deduction can be claimed under s 51(1). INCOME - whether sham loan moneys received beneficially by applicant were income. Taxation Administration Act 1953 (Cth) s 14ZZ Income Tax Assessment Act 1936 (Cth) ss 51(1), 63(1)(b), 97, 260 Agreement between Australia and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income Article 7 Traknew Holdings Pty Ltd v Federal Commissioner of Taxation (1991) 91 ATC 4272 Sharrment Pty Ltd v Official Trustee (1988) 18 FCR 449 Snook v London and West Riding Investments Ltd [1967] 2 QB 786 Allsene Pty Ltd v Federal Commissioner of Taxation (1989) 89 ATC 5333 Esanda Ltd V Burgess [1984] 2 NSWLR 139 Cranstoun v Federal Commissioner of Taxation (1984) 75 FLR 220 Ferguson v O'Neill [1943] VLR 30