Commissioner of Taxation v CSR Ltd [2000] FCA 1513

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v CSR Ltd [2000] FCA 1513 INCOME TAX – Allowable deduction - $100,000,000 paid to taxpayer by insurer in settlement of claims for indemnity in respect of amounts paid and payable by taxpayer as damages to sufferers of asbestosis who had contracted the disease while working for the taxpayer, and also in settlement of claims by taxpayer against insurer on various causes of action, the proceeds of which would have been received by taxpayer on capital account – amount of $100,000,000 not apportioned between the two classes of claim by deed of settlement between taxpayer and insurer – whether whole amount income according to ordinary concepts for purpose of subs 25(1) of Income Tax Assessment Act 1936 (Cth) – whether amount received "by way of insurance or indemnity for or in respect of any loss … which [was] an allowable outgoing" within par 26(j) of that Act. Income Tax Assessment Act 1936 (Cth) ss 25(1), 26(j) Allsop v Commissioner of Taxation (1965) 113 CLR 341, applied McLaurin v Federal Commissioner of Taxation (1961) 104 CLR 381, applied Federal Commissioner of Taxation v Myer Emporium Ltd (1986) 163 CLR 199, distinguished Federal Coke Co Pty Ltd v Federal Commissioner for Taxation (1977) 34 FLR 375 (FC), referred to COMMISSIONER OF TAXATION v CSR LIMITED N 395 of 2000 LEE, COOPER, LINDGREN JJ 26 OCTOBER 2000 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 395 OF 2000

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN: COMMISSIONER OF TAXATION

Appellant

AND: CSR LIMITED (ACN 000 001 276)

Respondent

JUDGES: LEE, COOPER, LINDGREN JJ

DATE: 26 OCTOBER 2000

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. The appeal be dismissed. 2. The appellant pay the respondent's costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.