Commissioner of Taxation v La Rosa [2002] FCA 1036

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v La Rosa [2002] FCA 1036 TAXATION – income tax – assessable income – illegal business – stolen funds – whether evidence to support Tribunal finding funds were stolen TAXATION – income tax – allowable deductions – illegal business – stolen funds – whether Tribunal in error in finding funds eligible for deduction – whether deduction precluded as contrary to public policy TAXATION – income tax – assessable income – illegal business – funds in safety deposit box – whether evidence to support Tribunal finding funds belonged to taxpayer – whether Tribunal failed to consider whether funds stolen TAXATION – income tax – assessable income – income – illegal business – whether Tribunal in error of law in including any amounts earned from illegal activities as income TAXATION – income tax – review – procedure – evidence – whether denial of procedural fairness by Tribunal – effect of imprisonment and access to records – effect of refusal to call witnesses requested by taxpayer – applicability of accomplice rule Administrative Appeals Tribunal Act 1975 (Cth) ss 33, 33(1)(c), 44 Director of Public Prosecutions Act 1983 (Cth) s 6(1)(fa) Income Tax Assessment Act 1936 (Cth) ss 6(1), 25(1), 51(1), 51(4), 167, 254 Taxation Administration Act 1953 (Cth) s 14ZZK(b)(i) The Crimes (Traffic in Narcotic Drugs) Act 1990 (Cth) ss 6, 15C Customs Act 1901 (Cth) s 233B Crimes Act 1914 (Cth) Proceeds of Crime Act 1987 (Cth) Prisons Act 1981 (WA) s 62, 67, 68 Misuse of Drugs Act 1981 (WA) ss 5, 6, 33 Securities Act 1933, 15 USC 77 q(a) George v Federal Commissioner of Taxation (1952) 86 CLR 183 referred to Federal Commissioner of Taxation v Clarke (1927) 40 CLR 246 referred to Galea v Federal Commissioner of Taxation (1990) 21 ATR 1108 referred to Briggs v Deputy Federal Commissioner of Taxation (WA) 87 ATC 4278 referred to La Rosa (1989) 105 A Crim 362 referred to Charles Moore & Co (WA) Pty Ltd v Federal Commissioner of Taxation (1956) 95 CLR 344 followed Australian Broadcasting Tribunal v Bond (1990) 170 CLR 321 followed Minister for Immigration and Multicultural Affairs v Epeabaka (1998) 84 FCR 411 referred to Federal Commissioner of Taxation v McCabe (1990) 26 FCR 431 referred to Collis v Commissioner of Taxation 96 ATC 4831 referred to Gold Band Services Ltd v Inland Revenue Commissioner (NZ) (1961) NZLR 467 approved Commissioners of Inland Revenue v Warnes & Company, Limited [1919] 2 KB 444 distinguished Commissioners of Inland Revenue v Von Glehn & Company, Limited [1920] 2 KB 553 distinguished Minister of Finance v Smith [1927] AC 193 referred to Madad Pty Ltd v Commissioner of Taxation (1984) 4 FCR 420 referred to Mayne Nickless Ltd v Commissioner of Taxation [1984] VR 863 considered The Herald & Weekly Times Limited v The Federal Commissioner of Taxation (1932) 48 CLR 113 followed Federal Commissioner of Taxation v Snowden & Willson Proprietary Limited (1958) 99 CLR 431 considered Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 followed Burroughs Bldg. Material Co v Commissioner for Internal Revenue 47F(2d) 178 (1931) discussed Tank Truck Rentals, Inc v Commissioner of Internal Revenue 356 US 30 (1958) discussed Commissioner of Internal Revenue v Tellier 383 US 687 (1966) discussed Hoover Motor Express Co v United States 356 US 38 (1958) referred to Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd (1978) 139 CLR 410 referred to Scott v Cawsey (1907) 5 CLR 132 referred to R v Adams (1935) 53 CLR 563 referred to Beckwith v R (1976) 12 ALR 333 referred to Cooper Brookes (Wollongong) Pty Ltd v Federal Commissioner of Taxation (1981) 147 ALR 297 referred to Western Australian Trustee Executor & Agency Co Ltd v Commissioner of State Taxation of Western Australia (1980) 147 CLR 119 referred to Federal Commissioner of Taxation v Raptis (1989) 89 ATC 4994 referred to Federal Commissioner of Taxation v Glennan (1999) 90 FCR 538 referred to Scott v Commissioner of Taxation (1935) 35 SR (NSW) 215 referred to Dietrich v The Crown (1992) 188 CLR 292 referred to Nguyen v Minister for Immigration & Multicultural Affairs [2000] FCA 1265 followed New South Wales v Canellis (1994) 181 CLR 309 referred to Stuart v Federal Commissioner of Taxation (1996) 34 ATR 112 referred to Rich v Groningen (1997) 95 A Crim R 272 referred to COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v FRANCESCO DOMINICO LA ROSA W147 of 2000 RD NICHOLSON J 21 AUGUST 2002 PERTH