Sun Alliance Investments Pty Ltd (in liq) v Commissioner of Taxation [2003] FCA 75

FEDERAL COURT OF AUSTRALIA

Sun Alliance Investments Pty Ltd (in liq) v Commissioner of Taxation [2003] FCA 75 INCOME TAX – capital gains tax – objection to amended income tax assessment reducing capital losses claimed - consequent increase in taxable income – reduced cost base of asset by operation of rebatable dividend adjustment – meaning of 'profit' – meaning of 'derived' - whether Part IIIA of the Income Tax Assessment Act 1936 (Cth) includes unrealised profits Income Tax Assessment Act 1936 (Cth), Pt IIIA, ss 60ZK(1B), 160AX, 160AY(3), 160XK(5)(b), 160Z(1)(b), 160ZC(2), 160ZD, 160ZH(3), 160ZK(1), 160ZK(1B), 160ZK(5), 160ZK(6), 160ZK(7), 160ZP, 160ZZRN(1)(c) and 160ZZS Taxation Laws Amendment Act (No 2) 1994 (Cth) Income Tax Assessment Act 1922 (Cth) Re The Spanish Prospecting Co Ltd [1911] 1 Ch 92 cited Federal Commissioner of Taxation v Slater Holdings Limited (1984) 156 CLR 447 cited Bond v Barrow Haematite Steel Company [1902] 1 Ch 353 cited In re Income Tax Acts [No 2] [1930] VLR 233 cited QBE Insurance Group Limited v Australian Securities Commission (1992) 38 FCR 270 cited Webb (Commissioner of Taxes (Vic)) v Australian Deposit and Mortgage Bank Ltd (1910) 11 CLR 223 cited Evans v Federal Commissioner of Taxation (1936) 55 CLR 80 cited Federal Commissioner of Taxation v Clarke (1927) 40 CLR 246 cited Tindal v Federal Commissioner of Taxation (1946) 72 CLR 608 cited Brent v Federal Commissioner of Taxation (1971) 125 CLR 418 cited Commissioner of Taxes (SA) v Executor Trustee & Agency Co of South Australia Ltd (1938) 63 CLR 108 cited Industrial Equity Ltd v Blackburn (1977) 137 CLR 567 cited Hancock Family Memorial Foundation Ltd v Porteous (2000) 156 FLR 249 cited Australasian Oil Exploration Ltd v Lachberg (1958) 101 CLR 119 cited Dimbula Valley (Ceylon) Tea Co Ltd v Laurie [1961] Ch 353 cited Dickson v Federal Commissioner of Taxation (1940) 62 CLR 687 cited Read v Commonwealth (1988) 167 CLR 57 cited SUN ALLIANCE INVESTMENTS PTY LTD (IN LIQUIDATION) v COMMISSIONER FOR TAXATION N 341 OF 2000 STONE J 13 FEBRUARY 2003 SYDNEY