Walters v Commissioner of Taxation [2007] FCA 1270

FEDERAL COURT OF AUSTRALIA

Walters v Commissioner of Taxation [2007] FCA 1270 TAXATION AND REVENUE – consideration of whether a taxpayer engaging in a sequence of transactions by reason of which the taxpayer did not realise a capital gain upon disposal of a CGT asset nevertheless engaged in a sequence of transactions constituting a scheme to which Part IVA of the Income Tax Assessment Act 1936 (Cth), applies – consideration of the notions of 'scheme', 'obtaining a tax benefit', 'purpose', the application of an exclusion by reason of s 177C(2)(a) of the Act – consideration of principles governing the determination of an amount of additional tax by way of penalty – consideration of ss 226 and 222C of the Act as those provisions applied prior to the repeal of Part VII of the Act

Taxation Administration Act 1953 (Cth) Income Tax Assessment Act 1936 (Cth), s 177A(1), s 177A(5), s 177C(1), s 177C(2), s 177D, s 177F(1), s 177F(2) Income Tax Assessment Act 1997 (Cth), the provisions of Subdivision 122‑A Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (Cth) Acts Interpretation Act 1901 (Cth)

Federal Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404 - cited Federal Commissioner of Taxation v Peabody (1994) 181 CLR 359 - cited Federal Commissioner of Taxation v Hart (2004) 217 CLR 216 - cited Walstern v Commissioner of Taxation (2003) 138 FCR 1 - quoted DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS v COMMISSIONER OF TAXATION QUD8 OF 2006 COMMISSIONER OF TAXATION v DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS QUD10 OF 2006

GREENWOOD J

20 AUGUST 2007

BRISBANE IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY QUD8 OF 2006

ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY SENIOR MEMBER BJ MCCABE

BETWEEN: DAVID JAMES WALTERS