MLC Limited v Deputy Commissioner of Taxation [2002] FCA 1491

FEDERAL COURT OF AUSTRALIA

MLC Limited v Deputy Commissioner of Taxation [2002] FCA 1491 INCOME TAX – assessable income – taxpayers authorised life insurance companies required to include profit as assessable income – taxpayers denied deductions under Division 10D Income Tax Assessment Act 1936 (Cth) for "qualifying expenditure" related to extensions, alterations and improvements to income producing buildings – whether profit on sale required to be calculated by bringing to account deductions claimed – whether s 82 Income Tax Assessment Act 1936 (Cth) applicable – whether s 82 to be given a literal interpretation or construed by reference to s 124ZH and policy of Act to promote expenditure on income producing property. INCOME TAX – penalty – whether failure on the part of tax agents to take reasonable care. WORDS & PHRASES – "reasonable care" Income Tax Assessment Act 1936 (Cth) ss 82, 124ZG, 124ZH, 226G Acts Interpretation Act 1901 (Cth) s 15AB Colonial Mutual Life Assurance Society Ltd v Federal Commissioner of Taxation (1946) 73 CLR 604 cited Loxton v Commissioner of Taxation (Cth) (1973) 47 ALJR 95 referred to Walker v Shire of Flinders [1984] VR 409 cited International Writing Institute Inc v Rimila Pty Ltd (1993) 27 IPR 546 cited Cooper Brookes (Wollongong) Pty Ltd v Commissioner of Taxation (Cth) (1981) 147 CLR 297 considered Federal Commissioner of Taxation v Top of the Cross Pty Ltd (1981) 37 ALR 623 cited Federal Commissioner of Taxation v Faywin Investments Pty Ltd (1990) 22 FCR 461 cited Totalizator Agency Board v Federal Commissioner of Taxation (1996) 69 FCR 311 cited Federal Commissioner of Taxation v Murry (1998) 193 CLR 605 cited CIC Insurance Ltd v Bankstown Football Club Limited (1997) 187 CLR 384 applied Australia & New Zealand Banking Group Ltd v Federal Commissioner of Taxation (1994) 48 FCR 268 referred to North Ryde RSL Community Club Ltd v Federal Commissioner of Taxation 2002 ATC 4293 cited MLC LIMTED v DEPUTY COMMISSIONER OF TAXATION N 1159 OF 2001 MLC LIMITED v DEPUTY COMMISSIONER OF TAXATION N 1160 OF 2001 MLC LIFETIME COMPANY LIMITED v DEPUTY COMMISSIONER OF TAXATION N 1161 OF 2001 HILL J 29 NOVEMBER 2002 SYDNEY