Whitaker v Commissioner of Taxation [1998] FCA 262

FEDERAL COURT OF AUSTRALIA

TAXATION - whether an amount included in a judgment for damages for personal injuries, in respect of interest for a period between the date when the cause of action arose and the date of judgment, is income or capital - discussion of principles upon which s 94 of the Supreme Court Act 1970 (NSW) is to be applied - nature and function of an award under the section - whether an amount of post-judgment interest under s 95 of the Supreme Court Act 1970 (NSW) is income or capital - whether an apportioned amount of solicitor-and-client costs is deductible for income tax purposes against post-judgment interest - discussion of the purpose for which legal costs are incurred as the determinant of their character for income tax purposes.

Supreme Court Act 1970 (NSW), ss 94, 95

Rogers v Whitaker (1992) 175 CLR 479, referred to

M.B.P. (S.A.) Proprietary Limited v Gogic (1991) 171 CLR 657, applied

Scott v The Commissioner of Taxation of the Commonwealth of Australia (1966) 117 CLR 514, applied

G.P. International Pipecoaters Proprietary Limited v The Commissioner of Taxation of the Commonwealth of Australia (1990) 170 CLR 124, applied

The Commissioner of Taxation of the Commonwealth of Australia v Rowe (1997) 187 CLR 266, applied

Commissioner of Taxation v Rowe (1995) 60 FCR 99, applied

Haines v Bendall (1991) 172 CLR 60, applied

Westminster Bank, Ltd v Riches [1945] 1 All ER 466, applied

Riches v Westminster Bank Limited [1947] AC 390, applied

Andjelic v Marsland (1996) 186 CLR 20, referred to

Pickett v British Rail Engineering Ltd [1980] AC 136, referred to

Metropolitan Meat Industry Board v Williams (1991) 24 NSWLR 54, referred to

NSW Department of Technical & Further Education v Pitt (1993) 9 NSWCCR 309, referred to

Golec v Scott (1995) 38 NSWLR 168, referred to

Alvorac General Engineering Pty Ltd v Arlotta (1993) 29 NSWLR 734, referred to