Tolich v Commissioner of Taxation (No 2) [2007] FCA 1776

FEDERAL COURT OF AUSTRALIA

Tolich v Commissioner of Taxation (No 2) [2007] FCA 1776

MATE TOLICH v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA WAD 47 OF 2005 DOMENIC PRINCI v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA WAD 48 of 2005 KEVIN DORN v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA WAD 49 of 2005 VINCENT PRINCI v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA WAD 50 of 2005 ALLEN PRINCE v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA WAD 57 of 2005 KEVIN SLEIGHT v COMMISSIONER OF THE COMMONWEALTH OF AUSTRALIA WAD 59 of 2005

BESANKO J

26 OCTOBER 2007

ADELAIDE (HEARD IN PERTH)

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY WAD 47 OF 2005

BETWEEN: MATE TOLICH

Applicant

AND: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

JUDGE: BESANKO J

DATE OF ORDER: 26 OCTOBER 2007

WHERE MADE: ADELAIDE (HEARD IN PERTH)

THE COURT ORDERS THAT: 1. The objection decision in relation to the year of income ended 30 June 1994 be set aside and the matter be remitted to the respondent with the direction that the objection in relation to the year of income ended 30 June 1994 be allowed so as to allow the applicant a deduction to the extent of the cash outlays of $71,550.49 and otherwise the objection be disallowed. 2. The objection decision in relation to the year of income ended 30 June 1995 be set aside and the matter be remitted to the respondent with the direction that the objection in relation to the year of income ended 30 June 1995 be allowed so as to allow the applicant a deduction to the extent of the cash outlays of $11,000 and otherwise the objection be disallowed. 3. The matter is otherwise remitted to the respondent for consideration whether any compensating adjustments pursuant to s 177F(3) of the Income Tax Assessment Act 1936 (Cth) should be made in either of the years of income ended 30 June 1995 or 30 June 1996 in relation to any further cash payments which may have been made by the applicant in connection with the applicant's involvement in the TVI Project in the 1995 financial year. 4. The objection decision in relation to the year of income ended 30 June 1996 be set aside and the matter be remitted to the respondent with the direction that the objection in relation to the year of income ended 30 June 1996 be allowed so as to allow the applicant a deduction to the extent of the cash outlays of $58,125 and otherwise the objection be disallowed. 5. The applicant is to pay 90 per cent of the respondent's costs of the appeal. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.