Weyers v Commissioner of Taxation [2006] FCA 818

FEDERAL COURT OF AUSTRALIA

Weyers v Commissioner of Taxation [2006] FCA 818 TAXATION – trusts – trust debts – liability of current trustee for debts incurred by previous trustee – whether right to be indemnified out of trust assets – whether income can be set off against accumulated losses incurred as a result of trust debts

TAXATION – trusts – whether payment from trust can be characterized as a loan or a distribution

TAXATION – assessment of taxable income – amended assessment – whether amended assessment excessive

Income Tax Assessment Act (1936) (Cth) ss 51, 99B, 170(2), 226G, 226H, 226J, Pt IVA, Sch 2F Evidence Act 1995 (Cth) Administrative Decisions (Judicial Review) Act 1977 (Cth) Real Property Act 1900 (NSW) New Zealand Flax Investments Ltd v Federal Commissioner of Taxation (1938) 61 CLR 179 cited Federal Commissioner of Taxation v James Flood Pty Ltd (1953) 88 CLR 492 cited Warner Music Australia Pty Ltd v Commissioner of Taxation (1996) 70 FCR 197 followed Commissioner of Taxation v Rowe (1995) 60 FCR 99 discussed Commissioner of Taxation v Rowe (1996-1997) 187 CLR 266 considered Traknew Holdings Pty Ltd v Federal Commissioner of Taxation (1991) 21 ATR 1478 discussed Avon Downs Pty Ltd v Federal Commissioner of Taxation (1949) 78 CLR 353 considered Kajewski v Federal Commissioner of Taxation (2003) 52 ATR 455 considered

BARBARA KAREN WEYERS v COMMISSIONER OF TAXATION QUD 156 OF 2004 ROBERT WEYERS v COMMISSIONER OF TAXATION QUD 157 OF 2004 NOMMACK NOMINEES PTY LTD (ACN 002 872 871) v COMMISSIONER OF TAXATION QUD 142 OF 2005 DOWSETT J 30 JUNE 2006 BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD 156 OF 2004

BETWEEN: BARBARA KAREN WEYERS

APPLICANT

AND: COMMISSIONER OF TAXATION

RESPONDENT

IN THE FEDERAL COURT OF AUSTRALIA