Guest v Commissioner of Taxation [2007] FCA 193

FEDERAL COURT OF AUSTRALIA Guest v Commissioner of Taxation [2007] FCA 193

INCOME TAX – allowable deductions – claim for interest accrued in 1998-2001 on loan for business purposes taken out in 1987 – cessation of involvement in business in 1991 – taxpayer only liable for principal and interest if two early repayments not made on time Held: 1. Early repayments not made on time. 2. No election by lender to allow late payment. 3. Interest had sufficient connection with business. EVIDENCE – Evidence Act 1995 (Cth) s 69 – "person" not required to be identified

WORDS AND PHRASES – "records" "proceeding"

Income Tax Assessment Act 1997 (Cth) s 8-1 Evidence Act 1995 (Cth)ss 69, 135(b) Corporations Act 2001 (Cth) s 1035 Karmot Auto Spares Pty Limited v Dominelli Ford (Hurstville) Pty Ltd (1992) 35 FCR 560 at 565 followed Lee v Minister for Immigration and Multicultural Affairs [2002] FCA 303 followed Lee v Minister for Immigration and Multicultural Affairs [2002] FCAFC 305 cited Duke Group Ltd (in liq) v Arthur Young (1990) 55 SASR 11 followed Australian Securities and Investments Commission v Rich (2005) 216 ALR 320 at [197] followed Maritime Union of Australia v Geraldton Port Authority [1999] FCA 685 at [52] not followed National Australia Bank Ltd v Rusu (1999) 47 NSWLR 309 cited Nilsen Development Laboratories Pty Ltd v Federal Commissioner of Taxation (1981) 144 CLR 616 at 627 applied Cook v Fowler (1874) LR 7 HL 27 cited Gair v Federal Commissioner of Taxation (1944) 71 CLR 388 distinguished The Herald and Weekly Times Ltd v Federal Commissioner of Taxation (1932) 48 CLR 113 cited Placer Pacific Management Pty Ltd v Federal Commissioner of Taxation (1995) 31 ATR 253 cited Federal Commissioner of Taxation v Brown (1999) 99 ATC 4600 cited Federal Commissioner of Taxation v Jones (2002) ATC 4135 cited R & D Holdings Pty Ltd v Deputy Federal Commissioner of Taxation (2006) ATC 4472 cited Commissioner of Taxation v Riverside Road Lodge Pty Ltd (in liq) (1990) 23 FCR 305 cited Steele v Deputy Commissioner of Taxation (1999) 197 CLR 449 cited Federal Commissioner of Taxation v Total Holdings (Aust) Pty Ltd (1979) 79 ATC 4279 at 4283 cited Commissioner of Taxation v Sleight (2004) 136 FCR 211 at [46]-[61] cited JOHN DAVID GUEST v COMMISSIONER OF TAXATION Vid 376 OF 2004