Cameron Brae Pty Ltd v Commissioner of Taxation [2006] FCA 918

FEDERAL COURT OF AUSTRALIA

Cameron Brae Pty Ltd v Commissioner of Taxation [2006] FCA 918 TAXATION – income tax – deduction claimed for contribution to offshore fund governed by trust deed allowing benefits to be paid to discretionary members at trustee's discretion – director and his son (an employee of taxpayer) nominated by taxpayer as discretionary members – whether contribution made for sole purpose of making provision for superannuation benefits for an eligible employee – whether contribution a loss or outgoing incurred in gaining taxpayer's assessable income.

TAXATION – fringe benefits tax – whether fringe benefits tax payable in respect of contribution to a fund governed by trust deed allowing benefits to be paid to discretionary members at trustee's discretion – two employees of taxpayer nominated as discretionary members – trustee's discretion not yet exercised.

TAXATION – penalties – whether contention in support of claimed deduction was reasonably arguable.

Income Tax Assessment Act 1936 (Cth) ss 6(1), 26AAB, 82AAE, 221A, 222C, 226K, 267(1) Superannuation Industry (Supervision) Act 1993 (Cth) ss 10, 45 Income Tax Assessment Act 1997 (Cth) s 8-1 Fringe Benefits Tax Assessment Act 1986 (Cth) ss 40, 67, 136(1) Acts Interpretation Act 1901 (Cth) ss 15AB(1), 23 The Fetters on Trustees' Discretions (2002) 16 Trust Law International 214 Walstern v Commissioner of Taxation (2003) 138 FCR 1 Scott v Federal Commissioner of Taxation (No.2) (1966) 40 ALJR 265 Mahony v Commissioner of Taxation (1967-8) 41 ALJR 232 Re Coram; Ex parte Official Trustee (1992) 36 FCR 250 Federal Commissioner of Taxation v Roche (1991) 105 ALR 95 Raymor Contractors Pty Ltd v Commissioner of Taxation (Cth) (1991) 21 ATR 1410 Magna Alloys & Research Pty Ltd v Commissioner of Taxation (Cth)(1980) 49 FLR 183 Essenbourne Pty Ltd v Commissioner of Taxation (2002) ATC 5201 Spotlight Stores Pty Ltd v Federal Commissioner of Taxation [2004] ATC 4,674 Caelli Constructions (Vic) Pty Ltd v Commissioner of Taxation [2005] FCA 1467 Indooroopilly Children Services (Qld) Pty Ltd v Commissioner of Taxation [2006] FCA 734 Pridecraft Pty Ltd v Federal Commissioner of Taxation (2005) 213 ALR 450