Dormer v Federal Commissioner of Taxation [2002] FCA 537

FEDERAL COURT OF AUSTRALIA

Dormer v Federal Commissioner of Taxation

[2002] FCA 537 TAXATION – assessment of income – where sole practitioner returns income on a cash receipts basis and business transferred to a partnership which returns income on an accruals basis – whether debts of sole practice assessable when received – whether Henderson applies

Income Tax Assessment Act 1936 (Cth) Taxation Laws Amendment (Self Assessment) Act 1992 (Cth)

Commissioner of Taxation (Cth) v Henderson (1970) 119 CLR 612 distinguished JOHN FREDERICK DORMER v FEDERAL COMMISSIONER OF TAXATION A 18 OF 2001 GYLES J SYDNEY (HEARD IN CANBERRA) 30 APRIL 2002

IN THE FEDERAL COURT OF AUSTRALIA

AUSTRALIAN CAPITAL TERRITORY DISTRICT REGISTRY A18 OF 2001

BETWEEN: JOHN FREDERICK DORMER

APPLICANT

AND: FEDERAL COMMISSIONER OF TAXATION

RESPONDENT

JUDGE: GYLES J

DATE OF ORDER: 30 APRIL 2002

WHERE MADE: SYDNEY (HEARD IN CANBERRA)

THE COURT ORDERS THAT: 1. The application to set aside the objection decision is dismissed. 2. The objection decision is varied by remitting all of the tax shortfall penalties imposed by the amended assessments for the years ended 30 June 1998 and 30 June 1999. 3. The applicant should pay the respondent's costs of the proceeding. 4. Liberty to apply as to the form of these orders. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

AUSTRALIAN CAPITAL TERRITORY DISTRICT REGISTRY A18 OF 2001

BETWEEN: JOHN FREDERICK DORMER

APPLICANT

AND: FEDERAL COMMISSIONER OF TAXATION

RESPONDENT

JUDGE: GYLES J

DATE: 30 APRIL 2002

PLACE: SYDNEY (HEARD IN CANBERRA)

REASONS FOR JUDGMENT 1 This is an application by John Frederick Dormer ("the applicant") to set aside or vary an objection decision of the Federal Commissioner of Taxation ("the Commissioner") made on 28 February 2001, disallowing the applicant's objection to two notices of amended assessment.