Email Ltd v Commissioner of Taxation [1999] FCA 128

FEDERAL COURT OF AUSTRALIA

Email Ltd v Commissioner of Taxation [1999] FCA 128 INCOME TAX – whether payments made by the taxpayer were on account of capital or revenue – payments made pursuant to an indemnity given at time of sale of shares in a company – fifty per cent of the shares sold owned by a subsidiary of taxpayer – profit on sale of shares treated as capital profit in subsidiary's accounts.

Income Tax Assessment Act 1936 (Cth) s 51(1) John Fairfax and Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 cited Federal Commissioner of Taxation v Foxwood (Tolga) Pty Ltd (1981) 147 CLR 278 cited American Leaf Blending Co. Sdn. Bhd. v Director-General of Inland Revenue [1979] AC 676 discussed GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1989-1990) 170 CLR 124 cited Mount Isa Mines Ltd v Federal Commissioner of Taxation (1992-1993) 176 CLR 141 referred to Commissioner of Taxation v Ampol Exploration Ltd (1986) 13 FCR 545 cited Hallstroms Pty Ltd v Federal Commissioner of Taxation (1946) 72 CLR 634 cited Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 cited Commissioner of Taxation v E A Marr & Sons (Sales) Ltd (1984) 2 FCR 326 discussed Federal Commissioner of Taxation v Total Holdings (Australia) Pty Ltd (1979) 24 ALR 401 discussed Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645 cited Europa Oil (NZ) Ltd (No 2) v Commissioner of Inland Revenue [1976] 1 WLR 464 cited Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 applied NMRSB Limited v Federal Commissioner of Taxation 98 ATC 4188 discussed Carapark Holdings Ltd v The Commissioner of Taxation of the Commonwealth of Australia (1965-1966) 115 CLR 653 referred to Morley v Lawford and Company (1928) 14 TC 229 discussed Hunt v Wellesly (1945) 27 TC 78 discussed Jennings v Barfield (1962) 40 TC 365 discussed 15 CTBR(NS) Case 33 noted London Australia Investment Co Ltd v Federal Commissioner of Taxation (1977) 138 CLR 106 referred to Fanmac Ltd v Federal Commissioner of Taxation 91 ATC 4703 cited Goodman Fielder Wattie Ltd v Commissioner of Taxation (1991) 29 FCR 376 cited