Essenbourne Pty Limited v Commissioner of Taxation [2002] FCA 1577

FEDERAL COURT OF AUSTRALIA

Essenbourne Pty Limited v Commissioner of Taxation [2002] FCA 1577 TAXATION - tax deduction - whether entitled to claim deduction for contribution to employee incentive trust - whether payment constituted capital expenditure - whether payment referrable to income production - whether tax benefit - whether applicant engaged in scheme to avoid tax TAXATION - fringe benefits tax - whether contribution to employee incentive trust ought to have been included in calculation fringe benefits taxable amount - whether trustee of employee incentive trust an associate of employees - whether payment property or residual benefit - whether individuals ought to be identified where multiple participants in trust - whether benefit to employee in connection with employment EVIDENCE - rule in Jones v Dunkel (1959) 101 CLR 298 - whether failure to call witness ought to give rise to drawing of adverse inferences

Statutes Acts Interpretation Act 1901 (Cth) s 23 Fringe Benefits Tax Act 1986 (Cth) s 5 Fringe Benefits Tax Assessment Act 1986 (Cth) ss 67, 66, 136 Income Tax Assessment Act 1936 (Cth) ss 177F, 51, 177D, 177C, 26AAB Taxation Administration Act 1953 (Cth) s 14ZZ

Cases British Insulated & Helsby Cables Ltd v Atherton (1926) AC 205 Discussed Federal Commissioner of Taxation v Peabody (1994) 181 CLR 359 Cited Fletcher v Federal Commissioner of Taxation (1991) 173 CLR 1 Cited Hart v Federal Commissioner of Taxation [2002] FCAFC 222 Cited J & G Knowles & Associates Pty Ltd v Commissioner of Taxation (2000) 96 FCR 402 Cited Jones v Dunkel (1959) 101 CLR 298 Applied Kumagai Gumi Co Ltd v Commissioner of Taxation (1999) 90 FCR 274 Cited Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 Cited Peabody v Commissioner of Taxation (1993) 40 FCR 531 Cited Roads and Traffic Authority of New South Wales v Commissioner of Taxation (1993) 43 FCR 223 Refd to Sun Newspapers Ltd v Federal Commissioner of Taxation (1939) 61 CLR 337 Cited The State of Queensland v The Commonwealth of Australia [The First Fringe Benefits Tax Case] (1986) 162 CLR 74 Cited ESSENBOURNE PTY LIMITED v COMMISSIONER OF TAXATION Q 170 of 2001 AND ESSENBOURNE PTY LIMITED v COMMISSIONER OF TAXATION V 273 of 2001 KIEFEL J 17 DECEMBER 2002 BRISBANE