Deputy Commissioner of Taxation v Jones [1999] FCA 308

FEDERAL COURT OF AUSTRALIA

Deputy Commissioner of Taxation v Jones [1999] FCA 308

BANKRUPTCY – whether income tax for the period from the commencement of the year of income prior to a taxpayer becoming bankrupt and ending with the day on which the taxpayer becomes a bankrupt is a provable debt in the bankruptcy. INCOME TAX – assessment for year of income where taxpayer becomes bankrupt in the course of that year – whether part of the tax assessed is a provable debt in the taxpayer's bankruptcy – power of Commissioner to make assessments in respect of part of a year of income under s 168 of the Income Tax Assessment Act 1936 considered. Bankruptcy Act 1966 (Cth) s 55 Income Tax Assessment Act 1936 ss 166, 168, 175, 176 Official Trustee in Bankruptcy v CS & GJ Handby Pty Ltd (1989) 21 FCR 19 cited Taylor v Commissioner of Taxation (1987)16 FCR 212 cited Lever Bros Pty Ltd v Federal Commissioner of Taxation (1948) 77 CLR 78 cited McCallum v Federal Commissioner of Taxation (1997) 75 FCR 458 referred to Commissioner of Taxation v Kavich (1996) 68 FCR 519 followed Re Mendonca; ex parte Commissioner of Taxation (1969) 15 FLR 256 referred to Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 cited

Guiana Industrial and Commercial Investments Limited v Inland Revenue Commissioner (No 2) [1971] AC 841 distinguished Commissioner of Income Tax v Barcellos (1957) LRBG 105 cited Commissioner of Stamps (Western Australia) v The West Australian Trustee, Executor and Agency Company Limited (Mortimer Kelly's case) (1925) 36 CLR 98 referred to Commissioner of Stamps (Western Australia) v The West Australian Trustee, Executor and Agency Company Limited (Corbett's case) (1926) 38 CLR 63 referred to Deputy Federal Commissioner of Taxation v Brown (1958) 100 CLR 32 referred to Commissioner of State Taxation (WA) v Pollock (1993) 12 ACSR 217 referred to