Commissioner of Taxation v Slade Bloodstock Pty Ltd [2007] FCA 188

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Slade Bloodstock Pty Ltd [2007] FCA 188

FRINGE BENEFITS TAX – company made repayments of loans to its two shareholders – shareholders the only persons working in the business – no other form of remuneration from company Held: benefits received were "in respect of" employment and liable to fringe benefits tax WORDS AND PHRASES – "fringe benefits taxable amount", "in respect of" Fringe Benefits Tax Assessment Act 1986 (Cth) s 5B, 136(1), 148(1) Administrative Appeals Tribunal Act 1975 (Cth) s 44 Hope v Bathurst City Council (1980) 144 CLR 1 at 7 applied Collector of Customs v Pozzolanic Enterprises Pty Ltd (1993) 43 FCR 280 at 286-287 applied J & G Knowles & Associates Pty Ltd v Commissioner of Taxation (2000) 96 FCR 402 at [27] applied Slade Bloodstock Pty Ltd and Commissioner of Taxation [2006] AATA 666 reversed THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v SLADE BLOODSTOCK PTY LTD VID 967 OF 2006

HEEREY J

23 February 2007

MELBOURNE IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 967 OF 2006

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Applicant

AND: SLADE BLOODSTOCK PTY LTD

Respondent

JUDGE: HEEREY J DATE OF ORDER: 23 February 2007

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT:

1. The decision of the Administrative Appeals Tribunal made 31 July 2006 be set aside. 2. The decision under review therein be affirmed. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 967 OF 2006

BETWEEN: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Applicant

AND: SLADE BLOODSTOCK PTY LTD

Respondent