Calder v Commissioner of Taxation [2005] FCA 911

FEDERAL COURT OF AUSTRALIA

Calder v Commissioner of Taxation [2005] FCA 911

INCOME TAX - tax avoidance - amended assessments - allowable deductions - whether scheme to which Part IVA of Income Tax Assessment Act 1936 (Cth) applies - investment in tea-tree project - whether it would be concluded that taxpayer entered into scheme with dominant purpose of obtaining tax benefits - dominant purpose considered having regard to the factors in s 177D(1) Income Tax Assessment Act 1936 (Cth) INCOME TAX - deductions – management and farm fees and interest – prepaid management and farm fees and prepaid interest – whether allowable deductions Taxation Administration Act 1953 (Cth) s 14ZZ(a) Income Tax Assessment Act 1936 (Cth) Pt IVA, ss 51(1), 170, 170(2)(b)(ii), 177A(1), 177C, 177C(1), 177D, 177D(a), 177D(b)(i)-(viii) Commissioner of Taxation (Cth) v Spotless Services Ltd (1996) 186 CLR 404 Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 207 CLR 235 Commissioner of Taxation v Cooke [2004] FCAFC 75 Commissioner of Taxation v Sleight [2004] FCAFC 94 Eastern Nitrogen Ltd v Commissioner of Taxation (2001) 108 FCR 27 Federal Commissioner of Taxation v Hart (2004) 206 ALR 207 Fletcher v Federal Commissioner of Taxation (1991) 173 CLR 1 Peabody v Federal Commissioner of Taxation (1993) 40 FCR 531 Puzey v Federal Commissioner of Taxation (2002) 194 ALR 615 Vincent v Commissioner of Taxation (2002) 124 FCR 350 MICHAEL CALDER v COMMISSIONER OF TAXATION WAD 13 of 2003 WAD 14 of 2003 NICHOLSON J 1 JULY 2005 PERTH

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY WAD 13 OF 2003

WAD 14 OF 2003

BETWEEN: MICHAEL CALDER

APPLICANT

AND: COMMISSIONER OF TAXATION

RESPONDENT

JUDGE: NICHOLSON J