Sommer v Commissioner of Taxation of the Commonwealth of Australia [2002] FCA 1205

FEDERAL COURT OF AUSTRALIA

Sommer v Commissioner of Taxation [2002] FCA 1205

INCOME TAX – objection by a taxpayer to a Private Ruling that a lump sum paid in settlement of claims under a Professional Income Replacement policy is assessable income – whether the lump sum paid in consideration of the cancellation of the policy was in substance a sum paid in settlement of the taxpayer's claims for income replacement – whether lump sum paid was assessable income

Income Tax Assessment Act 1997 (Cth) ss 6-5 and 15-30

Commissioner of Taxation v McMahon (1997) 79 FCR 127 – cited Allied Mills Industries Pty Ltd v Commissioner of Taxation (1989) 20 FCR 288 – applied Reuter v Federal Commissioner of Taxation (1980) 93 ATC 5030 - cited Federal Commissioner of Taxation v CSR Ltd (2000) ATC 4710 - cited Carapark Holdings Limited v The Commissioner of Taxation (1967) 115 CLR 653 - applied Commissioner of Taxation v Smith (1981) 147 CLR 578 – applied Coward v Federal Commissioner of Taxation (1999) ATC 2166 - distinguished Henry Jones (IXL) Ltd v Commissioner of Taxation (1991) 31 FCR 64 – cited Federal Commissioner of Taxation v Inkster 89 ATC 5142 – cited Federal Commissioner of Taxation v The Myer Emporium Limited (1987) 163 CLR 199 – cited Van den Berghs Ltd v Clark [1935] AC 431 - cited Bennett v Federal Commissioner of Taxation (Cth) (1947) 75 CLR 480 - cited STEVEN JULIUS SOMMER v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA V 1011 OF 2001 MERKEL J 27 SEPTEMBER 2002 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 1011 OF 2001

ON APPEAL FROM THE TAXATION APPEALS DIVISION OF THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY A SENIOR MEMBER

BETWEEN: STEVEN JULIUS SOMMER

APPLICANT

AND: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA