Trustees of the Estate Mortage Fighting Fund Trust v Commissioner of Taxation [2000] FCA 981

FEDERAL COURT OF AUSTRALIA

Trustees of the Estate Mortgage Fighting Fund Trust v Commissioner of Taxation [2000] FCA 981 INCOME TAX – deductions – whether mailing expenses outlaid to solicit contributions to trust established as a fighting fund to assist persons who were beneficiaries in the failed Estate Mortgage Trusts were incurred in gaining assessable income where contributions received were placed on fixed deposit at interest – whether mailing expenses were capital or of a capital nature. INCOME TAX – trust estate – whether net income of the trust estate was taxable to trustee where terms of trust provided for accumulation of income but beneficiaries were co-owners in equity and could put to an end the trust for accumulation – whether beneficiaries had a vested and indefeasible interest in income.

Income Tax Assessment Act 1936 (Cth)ss 97, 99A Charles Moore & Co (WA) Pty Ltd v Commissioner of Taxation (1956) 95 CLR 344 cited Commissioner of Taxation v Smith (1981) 147 CLR 578 cited Ronpibon Tin NL v Commissioner of Taxation (1949) 78 CLR 47 referred to Lunney v Commissioner of Taxation (1958) 100 CLR 478 cited Commissioner of Taxation v Cooper (1991) 29 FCR 177 cited Handley v Commissioner of Taxation (1981) 148 CLR 182 referred to W Nevill & Co Ltd v Commissioner of Taxation (1937) 56 CLR 290 cited Steele v Deputy Commissioner of Taxation (1999) 161 ALR 201 discussed Texas Co (Australasia) Ltd v Commissioner of Taxation (1940) 63 CLR 382 referred to Hallstroms Pty Ltd v Commissioner of Taxation (1946) 72 CLR 634 cited Sun Newspapers Ltd v Commissioner of Taxation (1938) 61 CLR 337 discussed Cliffs International Inc v Commissioner of Taxation (1979) 142 CLR 140 distinguished Ounsworth v Vickers Ltd (1915) 3 KB 267 referred to Adelaide Racing Club Inc v Commissioner of Taxation (1964) 114 CLR 517 referred to Sacks v Gridiger (1990) 22 NSWLR 502 cited Saunders v Vautier (1841) 4 Beav 115; 49 ER 282 cited Commissioner of Taxation v Whiting (1943) 68 CLR 199 referred to Harmer v Commissioner of Taxation (1991) 173 CLR 264 discussed Dwight v Commissioner of Taxation (1992) 37 FCR 178 discussed Walsh Bay Developments Pty Ltd v Commissioner of Taxation (1995) 130 ALR 15 cited