Kumagai Gumi Co Ltd v Commissioner of Taxation [1999] FCA 235

FEDERAL COURT OF AUSTRALIA

Kumagai Gumi Co Ltd v Commissioner of Taxation [1999] FCA 235 TAXATION – fringe benefits tax – what constitutes an employer – what constitutes a fringe benefit – relevancy of exempt income – residual fringe benefits – relevance of valuation formula – extraterritorial effect – where the nexus with Australia lies – residency and source – whether the Federal Court has jurisdiction to consider questions of residency and source – immaterial error of law by the Tribunal

WORDS AND PHRASES – "former employer", "fringe benefits", "expense payment fringe benefits"

Income Tax Assessment Act 1936 Fringe Benefits Tax Assessment Act 1986 Fringe Benefits Tax Act 1986 Income Tax (International Agreements) Act 1953

Commissioner of Inland Revenue v Taylor [1961] NZLR 923 cited State of Queensland v Commonwealth (1987) 87 ATC 4029 cited Trustees Executors and Agency Co Ltd v Federal Commissioner of Taxation (1933) 49 CLR 220 cited Barcello v Electolytic Zinc Co of Australasia Ltd (1932) 48 CLR 391 cited Thorpe Nominees Pty Ltd v Federal Commissioner of Taxation (1988) 88 ATC 4886 followed Lombardo v Federal Commissioner of Taxation (1979) 79 ATC 4542 cited Collector of Customs v Pozzolanic Enterprises Pty Ltd (1993) 115 ALR 1 cited Nathan v Federal Commissioner of Taxation (1918) 25 CLR 183 cited Esquire Nominees Ltd v Federal Commissioner of Taxation (1972-3) 129 CLR 177 cited Fletcher v Commissioner of Taxation (1988) 19 FCR 442 cited Case X78, 90 ATC 571 distinguished Re J Bibby & Sons Ltd [1952] 2 All ER 483 cited

KUMAGAI GUMI CO LTD v COMMISSIONER OF TAXATION

NG 848 of 1998

HILL J

19 MARCH 1999

SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 848 OF 1998

ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL

BETWEEN: KUMAGAI GUMI CO LTD

Applicant