The Commissioner of Taxation of the Commonwealth of Australia v Brand R.G. [1995] FCA 758

CATCHWORDS

INCOME TAX - deductions - outgoings allowable to extent to which incurred in gaining or producing assessable income - disproportion between outgoings and income - character of outgoings - voluntary prepayment of seven years licence fees for prawn farming project - deferment of commencement of income earning activity - whether sufficient contemporaneity - Income Tax Assessment Act 1936, s 51(1). Income Tax Assessment Act 1936 (Cth) sub-s 51(1)

Professor R W Parsons, Income Taxation in Australia: Principles of Income, Deductibility and Tax Accounting (Law Book Co, 1985); "Income Taxation: an Institution in Decay" (1991) 13 Syd L Rev 435 Amalgamated Zinc (De Bavay's) Ltd v FCT (1935) 54 CLR 295 Brand v FCT 95 ATC 4262 Coles Myer Finance Ltd v FCT (1993) 176 CLR 640 FCT v Cooper (1991) 29 FCR 177 FCT v Emmakell Pty Ltd (1990) 22 FCR 157 FCT v Ilbery (1981) 58 FLR 191 FCT v Lau (1984) 6 FCR 202 FCT v Maddalena (1971) 45 ALJR 426 FCT v Osborne (1990) 26 FCR 63 FCT v Riverside Road Lodge Pty Ltd (in liq) (1989) 23 FCR 305 FCT v Smith (1981) 147 CLR 578 Fletcher v FCT (1991) 173 CLR 1 Goodman Fielder Wattie Ltd v FCT (1991) 29 FCR 376 The Griffin Coal Mining Co Ltd v FCT 89 ATC 4745; 90 ATC 4870 Inglis v FCT (1979) 28 ALR 425 Magna Alloys & Research Pty Ltd v FCT (1980) 49 FLR 183 Placer Pacific Management Pty Ltd v FCT 95 ATC 4459 Ronpibon Tin NL v FCT (1949) 78 CLR 47 Ure v FCT (1980) 50 FLR 219 Case 42/95 95 ATC 367

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA V. RONALD GRANT BRAND WAG49 OF 1995 LEE, LINDGREN, TAMBERLIN JJ Perth 20 September 1995

IN THE FEDERAL COURT OF AUSTRALIA ) WESTERN AUSTRALIA DISTRICT REGISTRY ) No WAG 49 of 1995 GENERAL DIVISION )

On appeal from a Judge of the Federal Court of Australia BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Appellant AND: RONALD GRANT BRAND Respondent