P & G Rocca Pty Ltd v Commissioner of Taxation [2002] FCA 732

FEDERAL COURT OF AUSTRALIA

P & G Rocca Pty Ltd v Commissioner of Taxation

[2002] FCA 732

INCOME TAX - deduction – disallowance of expenditure of interest on money borrowed and on-lent to another entity to purchase property and other outgoings in respect of the property – whether outgoings incurred in carrying on a business for the purpose of gaining or producing assessable income – significance of company structure and trust arrangements to factual assessment of whether outgoings were allowable deductions under s 51(1) of the Income Tax Assessment Act 1936 (Cth). Income Tax Assessment Act 1936 (Cth), s 51(1) AGC (Advances) Ltd v Commissioner of Taxation (1975) 132 CLR 175 – referred to Amalgamated Zinc (De Bavay's) Ltd v Commissioner of Taxation (1935) 54 CLR 295 – referred to Commissioner of Taxation v Anovoy Pty Ltd (2001) ATC 4197 - referred to Commissioner of Taxation v Hatchett (1971) 125 CLR 494 – cited Commissioner of Taxation v Riverside Road Lodge Pty Ltd (In Liquidation) (1990) 23 FCR 305 – referred to Federal Commissioner of Taxation v E.A. Marr and Sons (Sales) Pty Ltd (1984) ATC 4580 – referred to Federal Commissioner of Taxation v Snowden & Willson Pty Ltd (1958) 99 CLR 431 – discussed Federal Commissioner of Taxation v Total Holdings (Australia) Pty Ltd (1979) 43 FCR 217 – referred to Fletcher v Commissioner of Taxation (1991) 173 CLR 1 – applied Griffin Coal Mining Co Ltd v Federal Commissioner of Taxation (1990) 90 ATC 4870 – discussed John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 - cited Lodge v Federal Commissioner of Taxation (1972) 128 CLR 171 – discussed Lunney v Federal Commissioner of Taxation (1958) 100 CLR 478 – discussed Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 11 ATR 276 – cited Robert G. Nall v Federal Commissioner of Taxation (1937) 57 CLR 695 – referred to Ronpibon Tin NL v Federal Commissioner of Taxation (1949) 78 CLR 47 – cited Softwood Pulp and Paper Ltd v Commissioner of Taxation (1976) 76 ATC 4339 – discussed Steele v Commissioner of Taxation (1997) 73 FCR 330 – referred to Steele v Deputy Commissioner of Taxation (1999) 197 CLR 459 – discussed W Nevill & Co v Federal Commissioner of Taxation (1937) 56 CLR 290 – referred to P & G ROCCA PTY LTD (ACN 007 899 596) v COMMISSIONER OF TAXATION S.18 of 2000 MANSFIELD J 11 JUNE 2002 ADELAIDE