Commissioner of Taxation v Metaskills Pty Ltd [2003] FCA 766

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Metaskills Pty Ltd [2003] FCA 766 TAXATION – income tax – application for personal services business determination under Pt 2-42 of Income Tax Assessment Act 1997 (Cth) ("the Act") – application refused by Commissioner – taxpayer successfully applied for review of objection decision to Administrative Appeals Tribunal ("AAT") – AAT concluded, in terms of subs 87-65(3)(a)(ii) of the Act, that but for "unusual circumstances" applying to taxpayer in the income year, taxpayer could reasonably have been expected to meet the "business premises test" laid down in s 87-30 of the Act – Commissioner's appeal to Court on questions of law – AAT's finding that the contract which generated the income was made, not with the taxpayer, but with its director and sole employee – failure to observe requirements of natural justice before AAT because of failure to give taxpayer adequate notice that Commissioner would rely on ground that contract was not made with, and therefore resulting income not derived by, taxpayer.

Income Tax Assessment Act 1997 (Cth) Pt 2-42, subss 87-30(1), 87-65(3)

Liedig v Commissioner of Taxation (1994) 50 FCR 461 distinguished Fletcher v Commissioner of Taxation (1988) 19 FCR 442 followed Federal Commissioner of Taxation v Wade (1951) 84 CLR 105 followed Port Jackson Stevedoring Pty Ltd v Salmond & Spraggon (Australia) Pty Ltd (1978) 139 CLR 231 referred to Bailey v Federal Commissioner of Taxation (1977) 136 CLR 214 referred to Rajski v Scitec Corporation Pty Ltd (unreported, Supreme Court of NSW, Court of Appeal, Mahoney JA, 16 June 1986) referred to Minogue v Human Rights and Equal Opportunities Commission (1999) 166 ALR 129 referred to Stead v State Government Insurance Commission (1986) 161 CLR 141 followed Re Refugee Review Tribunal; ex parte Aala (2000) 204 CLR 82 followed