J & G Knowles & Associates Pty Ltd v Commissioner of Taxation [1999] FCA 1060

FEDERAL COURT OF AUSTRALIA

J & G Knowles & Associates Pty Ltd v Commissioner of Taxation [1999] FCA 1060 FRINGE BENEFITS TAX – Interest free loans by company to directors – Company trustee of unit trust – Shares in company and units in trust held by directors' family discretionary trusts – Directors no vested interest in capital or income ‑ Whether loans provided in respect of directors' employment or because directors treated themselves as owners of assets of unit trust. Fringe Benefits Tax Assessment Act 1986 ss 16(1), 18, 136 – "fringe benefit", 148(1) State Government Insurance Office (Q) v Rees (1979) 144 CLR 549 cited Workers' Compensation Board (Q) v Technical Products Pty Ltd (1988) 165 CLR 642 cited Tooheys Ltd v Commissioner of Stamp Duties (NSW) (1960) 105 CLR 602 cited Smith v Federal Commissioner of Taxation (1987) 164 CLR 513 applied Technical Products Pty Ltd v State Government Insurance Office (Q) (1989) 167 CLR 45 cited Collector of Customs v Pozzolanic Enterprises Pty Ltd (1993) 43 FCR 280 applied Collector of Customs v Sharp Corporation (1994) 20 AAR 186 applied Cowell Electric Supply Company v Collector of Customs (1995) 54 FCR 1 applied Nelson v Inspector‑General in Bankruptcy (1997) 97 ATC 4338 considered Federal Commissioner of Taxation v Holmes (1995) 95 ATC 4476 cited Lombardo v Federal Commissioner of Taxation (1979) 40 FLR 208 considered Commissioner of Taxation v Cooper (1991) 29 FCR 177 cited

J & G KNOWLES & ASSOCIATES PTY LTD v COMMISSIONER OF TAXATION

VG 253 OF 1998 SUNDBERG J 4 AUGUST 1999 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VG 253 OF 1998

BETWEEN: J & G KNOWLES & ASSOCIATES PTY LTD

Applicant

AND: COMMISSIONER OF TAXATION

Respondent

JUDGE: SUNDBERG J

DATE OF ORDER: 4 AUGUST 1999