Commissioner of Taxation v Brown [1999] FCA 721

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Brown [1999] FCA 721

TAXATION – income tax – allowable deductions – taxpayer obtained loan to purchase business – loan agreement made no provision for early repayment – sale of business at a loss – only part of loan repaid – whether taxpayer entitled to deduction for interest payments on loan made after sale of business – Income Tax Assessment Act 1936 (Cth), s 51(1).

Income Tax Assessment Act 1936 (Cth) ss 51(1), 92(2)

Taxation Administration Act 1953 (Cth) s 14ZZ(a)

Hoysted v Federal Commissioner of Taxation (1925) 37 CLR 290 cited

Broken Hill Co Pty Ltd v Broken Hill Municipal Council (1925) 37 CLR 284 cited

Caffoor v Commissioner of Income Tax, Colombo [1961] AC 584 cited

AGC (Advances) Ltd v Commissioner of Taxation (1975) 132 CLR 175 applied

Federal Commissioner of Taxation v Riverside Road Pty Ltd (In liquidation) (1990) 23 FCR 305 applied

Placer Pacific Management Pty Ltd v Federal Commissioner of Taxation [1995] 95 ATC 4,459 applied

Steele v Deputy Commissioner of Taxation (1999) 161 ALR 201 applied

Fletcher v Federal Commissioner of Taxation (1991) 173 CLR 1 cited

COMMISSIONER OF TAXATION v JOHN JOSEPH BROWN WG 94 OF 1998 LEE, RD NICHOLSON AND MERKEL JJ 3 JUNE 1999 PERTH

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY WG 94 OF 1998

BETWEEN: COMMISSIONER OF TAXATION

Appellant

AND: JOHN JOSEPH BROWN

Respondent

JUDGES: LEE, RD NICHOLSON AND MERKEL JJ

DATE: 3 JUNE 1999

PLACE: PERTH

THE COURT ORDERS THAT:

The appeal be dismissed with costs.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY WG 94 OF 1998

BETWEEN: COMMISSIONER OF TAXATION

Appellant

AND: JOHN JOSEPH BROWN