Indooroopilly Children Services (Qld) Pty Ltd v Commissioner of Taxation [2006] FCA 734

FEDERAL COURT OF AUSTRALIA

Indooroopilly Children Services (Qld) Pty Ltd v Commissioner of Taxation [2006] FCA 734 TAXATION – Taxation Administration Act 1953 (Cth) – Fringe Benefits Tax Assessment Act 1986 (Cth) – definition of fringe benefit – whether benefits provided in respect of the employment of the employee – whether employees identified with sufficient particularity – whether trust in favour of the beneficiaries takes immediate effect as a vested interest in equal shares PRECEDENT – judicial comity – whether single judge should follow decisions of other single judges of Federal Court unless facts are distinguishable or judge satisfied that decisions were clearly wrong Held: For a benefit to be considered a 'fringe benefit' for the purposes of the Fringe Benefits Tax Assessment Act 1986 (Cth) reference to a particular employee in connection with the benefit said to have been provided is required. The proposed arrangement did not identify employee beneficiaries with sufficient particularity to come within that definition.

Fringe Benefits Tax Assessment Act 1986 (Cth) ss 136(1), 159 Income Tax Assessment Act 1936 (Cth) s 26AAB(14) Taxation Administration Act 1953 (Cth)ss 14ZY, 14ZZ, Pt IVC Div 5 Federal Court RulesO 52B r 5A(a) Anteden Pty Ltd v Glen Eira City Council [2000] VSC 366 cited Bank of Western Australia v Federal Commissioner of Taxation (1994) 55 FCR 233 cited Caelli Constructions (Vic) Pty Ltd v Commissioner of Taxation [2005] 147 FCR 449; (2005) 60 ATR 542; (2005) ATC 4938 followed CTC Resources NL v Commissioner of Taxation (1994) 48 FCR 397 cited Durovic trading as Shell Tornik Roadhouse v Judge, unreported Supreme Court of New South Wales, Rolfe J, 25 February 1997 cited Essenbourne Pty Ltd v Commissioner of Taxation [2002] FCA 1577; (2002) ATC 5201; (2002) 51 ATR 629 followed Gartside v Inland Revenue Commissioners [1968] AC 553 cited Hicks v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCA 757 cited J & G Knowles and Associates Pty Ltd v Commissioner of Taxation (2000) 96 FCR 402 cited Koara People v State of Western Australia [2006] FCA 66 cited La Macchia v Minister for Primary Industries and Energy (1992) 110 ALR 201 cited McDermott Projects Pty Ltd v Chadwell Pty Ltd (2002) 2 QdR 363 cited Nezovic v MIMIA (2003) 133 FCR 190 cited Spotlight Stores Pty Ltd v Commissioner of Taxation [2004] FCA 650; (2004) 55 ATR 745; (2004) ATC 4674 followed Swetnam Brothers Pty Ltd v Grundy, unreported Supreme Court of Tasmania, Wright J, 14 March 1997 cited Walstern Pty Ltd v Commissioner of Taxation (2003) 138 FCR 1; (2003) 54 ATR 423 followed Zotovic v Dobel Boat Hire Pty Ltd (1985) 62 ACTR 29 cited