Commissioner of Taxation v Email Ltd [1999] FCA 1177

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Email Ltd [1999] FCA 1177

INCOME TAX – Deductions – holding company liable for indemnities given on sale of shares owned by subsidiary – whether amounts payable under indemnity of a capital nature – amounts payable not deductible under s 51(1) Income Tax Assessment Act 1936 (Cth). Income Tax Assessment Act 1936 (Cth), s 51 Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337, approved Commissioner of Taxation v Ampol Exploration Ltd (1986) 13 FCR 545, cited Mount Isa Mines Ltd v Federal Commissioner of Taxation (1992) 176 CLR 141, cited Hallstroms Pty Ltd v Federal Commissioner of Taxation (1946) 72 CLR 634, cited Eisner v Macomber 252 US 189, cited Commissioner of Taxation v Montgomery [1999] HCA 34, cited United Collieries Ltd v Inland Revenue Commissioners (1930) SC 215, cited Texas Co (Australasia) Ltd v Federal Commissioner of Taxation (1940) 63 CLR 382, cited Steele v Deputy Commissioner of Taxation (1999) 99 ATC 4242, cited GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124, cited John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30, cited Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645, cited Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183, cited Fanmac v Federal Commissioner of Taxation (1991) 91 ATC 4703, cited Goodman Fielder Wattie Ltd v Commissioner of Taxation (1991) 29 FCR 376, cited Ounsworth v Vickers Ltd [1915] 3 KB 267, cited Australian National Hotels Limited v Federal Commissioner of Taxation (1988) 88 ATC 4627, cited Commissioner of Taxation v E A Marr & Sons (Sales) Ltd (1984) 2 FCR 326, cited Federal Commissioner of Taxation v Total Holdings (Australia) Pty Ltd (1979) 24 ALR 401, distinguished