Hart v Commissioner of Taxation [2001] FCA 1547

FEDERAL COURT OF AUSTRALIA

Hart v Commissioner of Taxation [2001] FCA 1547 INCOME TAX – whether interest on capitalised interest bears character of simple interest which has been capitalised – whether allowable deduction for purposes of s 51 Income Tax Assessment Act 1936 or s 8-1 Income Tax Assessment Act 1997 – where payment of interest not voluntary – split loan facility entered into by applicants INCOME TAX – whether split loan facility entered into by applicants a tax avoidance scheme for purposes of Pt IVA Income Tax Assessment Act 1936 – relevance of purpose of taxpayer entering into scheme – test to be applied – purpose to be assessed objectively Taxation Administration Act 1953 (Cth) Pt IVC Income Tax Assessment Act 1936 (Cth) ss 51, 177A, 177C, 177D, 177F Income Tax Assessment Act 1997 (Cth) s 8-1 Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47 cited Fletcher v Federal Commissioner of Taxation (Cth) (1991) 173 CLR 1 applied Ure v Federal Commissioner of Taxation (1981) 34 ALR 237, 50 FLR 219 cited Firth v Commissioner of Taxation [2001] FCA 1300 cited Steele v Deputy Commissioner of Taxation (1999) 197 CLR 459 cited Australian National Hotels Ltd v FCT (1988) 19 FCR 234 cited Federal Commissioner of Taxation v Total Holdings (Australia) Pty Ltd (1979) 24 ALR 401, 43 FLR 217 cited Magna Alloys and Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 cited NMRSB v Commissioner of Taxation (1998) 81 FCR 378 cited Federal Commissioner of Taxation v Peabody (1994) 181 CLR 359 applied Federal Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404 applied Federal Commissioner of Taxation v Spotless Services Ltd (1995) 62 FCR 244 cited Consolidated Press Holdings Ltd v Federal Commissioner of Taxation (1998) 88 FCR 21 cited Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 75 ALJR 1150 applied Metal Manufactures Ltd v Federal Commissioner of Taxation (1999) 99 ATC 5229 cited Eastern Nitrogen Ltd v Federal Commissioner of Taxation (2001) 108 FCR 27 cited WD & HO Wills (Australia) Pty Ltd v Federal Commissioner of Taxation (1996) 65 FCR 298 cited