Montgomery, Paul v Commissioner of Taxation of the Commonwealth of Australia [1997] FCA 212

CATCHWORDS TAXES AND DUTIES - Income tax - Ascertainment of assessable income - What is income derived by a taxpayer - Firm of solicitors moving to new premises - Whether payment by lessor of new building as an incentive to firm to take lease is income received by firm - What deductions allowable in respect of obtaining incentive payment Income Tax Assessment Act 1936, ss.25(1) 51(1) Commissioner of Taxation v Cooling (1990) 22 F.C.R. 42 Lister Blackstone Pty Ltd v Federal Commissioner of Taxation (1976) 134 C.L.R. 457 Paul Montgomery -v- Commissioner of Taxation of the Commonwealth of Australia (No. VG 209 of 1994) Paul Montgomery -v- Commissioner of Taxation of the Commonwealth of Australia (No. VG 210 of 1994) Judge: Jenkinson J Date: 8 April 1997 Place: Melbourne

IN THE FEDERAL COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY No. 209 of 1994 GENERAL DIVISION B E T W E E N: PAUL MONTGOMERY Applicant - and - COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent JUDGE: Jenkinson J DATE: 8 April 1997 PLACE: Melbourne MINUTES OF ORDER The Court orders that: 1. The appeal be allowed. 2. The objection decision the subject of the appeal be set aside. 3. The matter of the objection be remitted to the respondent to be considered and decided according to law. The Court declares that: The sum of $136,562 specified in the applicant's notice of objection is assessable income of the applicant. And the Court further orders that: 4. Each party be at liberty to file and serve within 14 days written submissions as to the costs of the appeal. 5. Consideration of the said costs be adjourned to a date to be fixed. NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules

IN THE FEDERAL COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY No. 210 of 1994 GENERAL DIVISION B E T W E E N: PAUL MONTGOMERY Applicant - and - COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent JUDGE: Jenkinson J DATE: 8 April 1997 PLACE: Melbourne MINUTES OF ORDER The Court orders that: 1. The appeal be allowed. 2. The objection decision the subject of the appeal be set aside. 3. The matter of the objection be remitted to the respondent to be considered and decided according to law. The Court declares that: The sum of $955,596 specified in the applicant's notice of objection is assessable income of the applicant. And the Court further orders that: 4. Each party be at liberty to file and serve within 14 days written submissions as to the costs of the appeal. 5. Consideration of the said costs be adjourned to a date to be fixed. NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules