Krampel Newman Partners Pty Ltd v Commissioner of Taxation [2003] FCA 123

FEDERAL COURT OF AUSTRALIA

Krampel Newman Partners Pty Ltd v Commissioner of Taxation [2003] FCA 123

INCOME TAX - Investment in Australian film as part of investors' contributions paid during year of income - liability to pay substantial balance deferred to be discharged out of future distributable profits from the film - whether the whole of the contributions allowable as a deduction in the year of income - whether film completed in the relevant year - whether taxpayers became the owners of units of industrial property in the film within the meaning of Div 10B of the Income Tax Assessment Act 1936 ("the ITAA") - whether taxpayers incurred expenditure of a capital nature in relation to producing the film - whether taxpayers used units of industrial property for the purpose of producing assessable income - whether taxpayers retained equitable interests in copyright in the film after the year of income - application of Part IVA of the ITAA - whether there was a "scheme" - effect of matters enumerated in s 177D(b) - whether application of s 82KL of the ITAA attracted - whether amendment of assessment permitted after expiration of four years from date when tax became due and payable under original assessment - whether additional tax by way of penalty properly assessed at 50% of shortfall.

Income Tax Assessment Act 1936 (Cth) Pts III, IVA, VIA, Divs 10, 10B, 10BA, ss 51(1), 82KH, 82KL, 90, 124K(1), 124L(1), 124UA, 170(2), 177, 177A, 177C(1), 177D(b), 177F(1), 177G, 222, 222A, 222C, 224, 226, 226L Copyright Act 1968 (Cth) ss 22(4), 86, 90 and 98(3) Explanatory Memorandum to the Taxation Laws Amendment (Self Assessment) Bill 1992

Commissioner of Taxation v Faywin Investments Pty Ltd (1990) 22 FCR 461 Federal Commissioner of Taxation v The Midland Railway Co of Western Australia Ltd (1952) 85 CLR 306 Inland Revenue Commissioners v Pullman Car Co Ltd [1954] 2 All E.R. 491 Federal Commissioner of Taxation v Australian Guarantee Corporation Ltd (1984) 2 FCR 483 New Zealand Flax Investments Ltd v Federal Commissioner of Taxation (1938) 61 CLR 179 Federal Commissioner of Taxation v Flood (1953) 88 CLR 492 Federal Commissioner of Taxation v AGC Ltd (1984) 2 FCR 483 RACV Insurance Pty Ltd v Commissioner of Taxation [1975] VR 1 Stern v McArthur (1988) 165 CLR 489 GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124 Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 National Australia Bank Ltd v Commissioner of Taxation (1997) 80 FCR 353 Federal Commissioner of Taxation v Myer Emporium Ltd (1987) 163 CLR 199 Federal Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 207 CLR 235 Vincent v Federal Commissioner of Taxation (2002) 193 ALR 687