Puzey v Commissioner of Taxation [2002] FCA 1171

FEDERAL COURT OF AUSTRALIA

Puzey v Commissioner of Taxation [2002] FCA 1171 INCOME TAX – deductions – taxpayer invested in sandalwood plantation project – whether project arrangements a facade – whether outgoings were incurred – whether outgoings on revenue or capital account - whether taxpayer carrying on a business INCOME TAX – Part IVA – "scheme" – whether determination properly made under s 177F that deductions be disallowed

Taxation Administration Act 1953 (Cth) s 14ZZ Income Tax Assessment Act 1936 (Cth) s 51(1), s 177A(5), s 177C(1), s 177 D, s 177F(1) Income Tax Assessment Act 1997 (Cth) s 8-1 Corporations Law

FCT v Jackson (1990) 27 FCR 1 referred to FCT v Woolcombers (WA) Pty Ltd (1993) 47 FCR 561 cited Sharrment Pty Ltd v Official Trustee in Bankruptcy (1988) 18 FCR 449 cited Albion Hotel Pty Ltd v FCT (1965) 115 CLR 78 cited Calkin v Commissioner of Inland Revenue (1984) 1 NZLR 440 cited Enviro Systems Renewable Resources Pty Ltd v ASIC (2001) 80 SASR 1 cited Clowes v FCT (1954) 91 CLR 209 cited Commissioner of Taxation v Lau (1981) 6 FCR 202 applied Milne v FCT (1976) 133 CLR 526 cited Fletcher v FCT (1991) 173 CLR 1 followed Ronpibon Tin NL v FCT (1949) 78 CLR 47 followed FCT v Whitfords Beach Pty Ltd (1982) 150 CLR 355 referred to Moana Sand Pty Limited v FCT (1988) 88 ATC 4897referred to RAC Insurance Pty Ltd v FCT (1990) 95 ALR 515 referred to Hallstroms Pty Ltd v FCT (1947) 72 CLR 634 referred to Steele v DCT (1999) 197 CLR 459 cited FCT v Consolidated Press Holdings Ltd (2001) 179 ALR 625 cited FCT v Spotless Services Ltd (1996) 186 CLR 404 applied Eastern Nitrogen Ltd v FCT (2001) 108 FCR 27 followed FCT v Metal Manufactures Ltd (2001) 108 FCR 150 followed Ferguson v FCT (1979) 26 ALR 307

NOEL PUZEY v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA W545 OF 2001