Anovoy Pty Ltd v Commissioner of Taxation [2000] FCA 953

FEDERAL COURT OF AUSTRALIA

Anovoy Pty Ltd v Commissioner of Taxation [2000] FCA 953

INCOME TAX – allowable deductions – acquisition of house property – purpose of profit making by resale or otherwise – expenditure on renovation of house property – interest on moneys borrowed to finance expenditure – whether incurred in gaining or producing assessable income – whether outgoing of a capital nature – Tribunal findings as to credibility relating to inconsistent statements filed with Tribunal – mis-description of first statement as "sworn" – whether error of fact or law – whether taxpayer misled by "sympathetic" response to testimony by Tribunal – rule in Browne v Dunn – procedural fairness. Income Tax Assessment Act 1936 s 51(1) s 25(1)(a) Administrative Appeals Tribunal Act 1975 s44(1)

Steele v Commissioner of Taxation (1999) 197 CLR 459 applied Steele v Federal Commissioner of Taxation (1997) 73 FCR 330 cited McCormack v Federal Commissioner of Taxation (1979) 143 CLR 284 applied Browne v Dunn (1893) 6 R 67 discussed R v Birks (1990) 19 NSWLR 677 cited Eastman v R (1997) 76 FCR 9 cited Amalgamated Zinc (De Bavay's) Ltd v Federal Commissioner of Taxation (1935) 54 CLR 295 cited W Neville & Co Limited v Federal Commissioner of Taxation (1937) 56 CLR 290 cited Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47 cited Federal Commissioner of Taxation v Snowden and Wilson Pty Ltd (1958) 99 CLR 431 cited Lunney v Federal Commissioner of Taxation (1958) 100 CLR 478 cited Magna Alloys and Research Pty Ltd v Federal Commissioner of Taxation (1980) 33 ALR 213 cited Federal Commissioner of Taxation v Ilbery (1981) 38 ALR 172 cited John v Federal Commissioner of Taxation (1989) 166 CLR 417 cited Ward and Co Ltd v Commissioner of Taxes [1923] AC 145 cited Commissioner of Taxation v Finn (1961) 106 CLR 60 cited John Fairfax and Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 cited Texas Co (Australasia) Ltd v Federal Commissioner of Taxation (1940) 63 CLR 382 cited Federal Commissioner of Taxation v Total Holdings (Australia) Pty Ltd (1979) 24 ALR 401 cited Fletcher v Federal Commissioner of Taxation (1991) 173 CLR 1 cited Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 cited Australian National Hotels Limited v Commissioner of Taxation (1988) 19 FCR 234 cited Travel Lodge Papua New Guinea Ltd v Chief Collector of Taxes (1985) 16 ATR 867 cited Wharf Properties Ltd v Commissioner of Inland Revenue [1997] AC 505 not followed Inglis v Federal Commissioner of Taxation (1979) 28 ALR 425 discussed Federal Commissioner of Taxation v Brand 95 ATC 4633 cited