Iddles v Commissioner of Taxation [2007] FCA 395

FEDERAL COURT OF AUSTRALIA

Iddles v Commissioner of Taxation [2007] FCA 395

TAXATION – income tax – tax effective investment schemes – appeal by taxpayer from decision of Administrative Appeals Tribunal – where taxpayer invested in viticulture project – where scheme included round robin arrangement regarding management and licensing fees and loan – where taxpayer had discernable commercial purpose for entering into scheme – whether Tribunal member ignored relevant factors in finding that relevant person had a dominant purpose of obtaining tax benefit – whether Tribunal member failed to proper and genuine consideration to commercial benefits of scheme – consideration of factors in s 177D(b) of the Income Tax Assessment Act 1936 (Cth). Held – dominant purpose to be ascertained exclusively by reference to s 177D(b)(i) to (viii) of the Act – subjective motivation of taxpayer not a relevant consideration – evidence of commercial purpose does not preclude finding of dominant purpose of obtaining a tax benefit – Tribunal member gave proper and genuine consideration to relevant matters regarding commercial benefits of scheme – no error of law in Tribunal's approach – appeal dismissed. Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1936 (Cth) Part IVA, s 51 s 177 Income Tax Assessment Act 1997 (Cth) s 8-1 Calder v Federal Commissioner of Taxation (2005) 59 ATR 655 considered Calder v Federal Commissioner of Taxation (2005) 61 ATR 267 applied Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 207 CLR 235 considered Commissioner of Taxation v Cooke (2004) 55 ATR 183 considered Commissioner of Taxation v Hart (2004) 217 CLR 216 considered Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404 considered Commissioner of Taxation v Sleight (2004) 136 FCR 211 considered Cooke v Federal Commissioner of Taxation (2002) 51 ATR 223 considered Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 471 cited Peabody v Commissioner of Taxation (1993) 40 FCR 531 considered NORM IDDLES v COMMISSIONER OF TAXATION WAD 261 OF 2005