Commissioner of Taxation v Haass [1999] FCA 1088

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Haass [1999] FCA 1088 TAXES AND DUTIES – ascertainment of assessable income – life insurance policy – intention at time of purchase to surrender policy when 10 year old child of policy holder commenced tertiary education – loan from insurer for payment of premium – policy surrendered after two years when loan and interest equalled cash value – whether net return assessable income Federal Commissioner of Taxation v The Myer Emporium Limited (1987) 163 CLR 199 applied Westfield Limited v Federal Commissioner of Taxation (1991) 28 FCR 333 applied Case 41/97 (1997) ATC 437 mentioned Glennan v Commissioner of Taxation (1999) 99 ATC 4467 mentioned

COMMISSIONER OF TAXATION v HELMUTH WOLFGANG HAASS T 3 OF 1999 HEEREY J 13 AUGUST 1999 MELBOURNE (HEARD IN HOBART)

IN THE FEDERAL COURT OF AUSTRALIA

TASMANIA DISTRICT REGISTRY T3 OF 1999

BETWEEN: COMMISSIONER OF TAXATION

Applicant

AND: HELMUTH WOLFGANG HAASS

Respondent

JUDGE: HEEREY J

DATE OF ORDER: 13 AUGUST 1999

WHERE MADE: MELBOURNE (HEARD IN HOBART)

THE COURT ORDERS THAT: 1. The appeal be allowed. 2. Decision of the Administrative Appeals Tribunal dated 5 February 1999 is set aside. 3. The decisions under review by the Tribunal and the assessments are confirmed. 4. Respondent pay the applicant's costs of the appeal, including reserved costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

TASMANIA DISTRICT REGISTRY T3 OF 1999

BETWEEN: COMMISSIONER OF TAXATION

Applicant

AND: HELMUTH WOLFGANG HAASS

Respondent

JUDGE: HEEREY J

DATE: 13 AUGUST 1999

PLACE: MELBOURNE (HEARD IN HOBART)

REASONS FOR JUDGMENT 1 The Commissioner of Taxation appeals from a decision of the Administrative Appeals Tribunal that a return to the respondent of $18,009.03 under a life policy issued by National Mutual Life Association of Australasia Ltd was not assessable income. 2 The question of law raised on the appeal is whether that amount was income according to ordinary concepts.