Ryvitch v Commissioner of Taxation [2001] FCA 806

FEDERAL COURT OF AUSTRALIA

Ryvitch v Commissioner of Taxation [2001] FCA 806 INCOME TAX ‑ Deductions ‑ Loss on property development ‑ Whether incurred by partnership ‑ No written partnership agreement ‑ Whether oral partnership ‑ Whether partnership to be inferred from conduct of parties ‑ Penalties for tax shortfall ‑ Whether shortfall caused by recklessness of taxpayer or agent. Income Tax Assessment Act 1936 (Cth) ss 92(2), 226H Partnership Act 1958 (Vic) s 6 rule 3 Robinson v Federal Commissioner of Taxation 86 ATC 4784 cited United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 cited Badeley v Consolidated Bank (1888) 38 Ch D 238 applied Elkin & Co Pty Ltd v Specialised Television Installations Pty Ltd [1961] SR (NSW) 165 cited Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) 5 CLR 647 cited HELEN JOSEPHINE RYVITCH v COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA V 214 OF 1999 SUNDBERG J 28 JUNE 2001 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V214 OF 1999

BETWEEN: HELEN JOSEPHINE RYVITCH

APPLICANT

AND: COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA

RESPONDENT

JUDGE: SUNDBERG J

DATE OF ORDER: 28 JUNE 2001

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT: 1. The appeals against the disallowance of the deductions for non‑primary production losses be dismissed. 2. The understatement penalties be set aside and the question of penalties be remitted to the respondent. 3. The applicant pay seven eights of the respondent's costs of the application. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V214 OF 1999

BETWEEN: HELEN JOSEPHINE RYVITCH

APPLICANT