Lamont v Commissioner of Taxation [2005] FCA 513

FEDERAL COURT OF AUSTRALIA

Lamont v Commissioner of Taxation [2005] FCA 513

TAXATION – Private ruling request from a partnership in the business of being an agency for legal services – Partnership purchased warrants for services of legal advisors from a services promoter and sold endorsements of the warrants to its clients – whether unclear language and possible internal conflict in the description of the arrangement affected the validity of the ruling – whether payment substantially below face value for acquisition of warrants involved the incurring of a loss or outgoing not of a capital nature so as to be an allowable deduction under s 8-1 of the Income Tax Assessment Act 1997 – Whether the Commissioner could apply Part IVA of the Income Tax Assessment Act 1936 to deny deductions otherwise allowable.

Taxation Administration Act 1953 (Cth), s 14ZAS, s 14ZAI(c), s 14ZAN(b),(e), s 14ZAQ. Income Tax Assessment Act 1936 (Cth), Part IVA, s 177D(b), s 177A, s 177F(1). Income Tax Assessment Act 1997 (Cth), s 8-1.

National Speakers Association of Australia Inc v Federal Commissioner of Taxation (1997) 97 ATC 5131 – cited. Federal Commissioner of Taxation v McMahon (1997) 79 FCR 127 – cited Williamson v Lukey (1931) 45 CLR 282 – cited Smith v ANL Limited (2000) 204 CLR 493 – referred to City Link Melbourne Limited v Federal Commissioner of Taxation 2004 ATC 4945 – referred to Ogilvy and Mather Pty Limited v Federal Commissioner of Taxation (1990) 90 ATC 4836 – referred to Sun Newspapers Ltd and Associated Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 – applied Ounsworth v Vickers Ltd [1915] 3 KB 267 – referred to John Smith & Son v Moore (1921) 2 AC 13 – referred to GP International Pipecoaters Pty Ltd v Commissioner of Taxation (1989) 170 CLR 124 – referred to Hallstroms Pty Ltd v Commissioner of Taxation (1946) 72 CLR 634 – referred to Bellinz v Commissioner of Taxation (1998) 84 FCR 154 – referred to