Idlecroft Pty Ltd v Commissioner of Taxation [2004] FCA 1087

FEDERAL COURT OF AUSTRALIA

Idlecroft Pty Ltd v Commissioner of Taxation [2004] FCA 1087 TAXATION – appeal pursuant to s 14ZZ of the Taxation Administration Act 1953 (Cth) – applicants as trustee for discretionary trusts entered joint venture agreements with Westside Commerce Centre Pty Ltd ("WCC") as trustee for the Hendon Unit Trust to develop a property – agreed method of funding was to add WCC as a beneficiary and appoint income – whether WCC properly appointed as beneficiary – whether the applicant trustee is liable to pay tax pursuant to s 99A of the Income Tax Assessment Act 1936 (Cth) in respect of all or any part of the amounts of income which it resolved to appoint to WCC as trustee of the Hendon Unit Trust – whether appointment of income pursuant to default provisions of deed occurs in the discounting period during which default occurs – whether default beneficiaries were presently entitled – whether s 100A of the Income Tax Assessment Act 1936 (Cth) operates to defeat any such entitlement -whether there was any tax shortfall on which the respondent could properly impose additional tax and penalties pursuant to Part VII of the Income Tax Assessment Act 1936 (Cth) Taxation Administration Act 1953 (Cth) s 14ZZ s 169 of the Income Tax Assessment Act 1936 (Cth) s 97, s 98, s 99A, s 100A, s 169, Pt VII, Division 6 Trusts Act 1973 (Qld) s 96 BRK (Bris) Pty Ltd v Federal Commissioner of Taxation [2001] ATC 4,111 referred to Cridland v Federal Commissioner of Taxation (1977) 140 CLR 330 referred to Federal Commissioner of Taxation v Dalco (1989-1990) 168 CLR 614 referred to Gauci v Federal Commissioner of Taxation (1975) 135 CLR 81 referred to Re Cavill Hotels Pty Ltd [1998] 1 QdR 396 cited Turner v Turner [1984] Ch 100 cited Federal Commissioner of Taxation v Whiting (1942-1943) 68 CLR 199 referred to Commissioner of Taxation v Prestige Motors Pty Ltd (1998) 82 FCR 195 referred to