Commissioner of Taxation v Nash [2013] FCA 336

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Nash [2013] FCA 336 Citation: Commissioner of Taxation v Nash [2013] FCA 336

Appeal from: Robert Nash and the Commissioner for Taxation [2012] AATA 719

Parties: COMMISSIONER OF TAXATION v ROBERT NASH

File number: NSD 1822 of 2012

Judge: GRIFFITHS J

Date of judgment: 16 April 2013

Catchwords: INCOME TAX – appeal from the AAT – decision of the appellant to disallow deductions claimed by the respondent for the General Interest Charge (GIC) – AAT held that a GIC expense is incurred at the time at which the GIC become due and payable by the operation of the relevant tax legislation – whether a taxpayer incurs expenditure for the GIC within the meaning of s 25-5(1)(c) of the Income Tax Assessment Act 1997 (Cth) in the years in which the GIC accrues on the tax debts to which it relates or whether it is incurred only when an assessment is issued for those tax debts – the meaning of "incur" in s 25-5(1)(c) of the Income Tax Assessment Act 1997 (Cth) – ongoing significance of assessments in the imposition and recovery of tax and related provisions concerning GIC

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1936 (Cth) s 204 Income Tax Assessment Act 1997 (Cth) s 25-5 Pay-roll Tax Assessment Act 1971 (WA) Tax Laws Amendment (Transfer of Provisions) Act 2010 (Cth) Taxation Administration Act 1953 (Cth) ss 8AAE, 8AAG, 955-1

Cases cited: Amalgamated Zinc (De Bavay's) Ltd v Federal Commissioner of Taxation (1935) 54 CLR 295 Bluebottle UK Limited v Deputy Commissioner of Taxation (2007) 232 CLR 598 Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 Cronulla Southerland Leagues Club Limited v Commissioner of Taxation (1990) 23 FCR 82 Batagol v Federal Commissioner of Taxation (1963) 109 CLR 243 Commissioner of Taxation v Consolidated Media Holdings Ltd [2012] HCA 55 Commissioner of Taxation v H (2010) 188 FCR 440 Commissioner of Taxation v Kavich (1996) 68 FCR 519 Commissioner of Taxation (WA) v Pollock (1993) 11 WAR 64 Commonwealth Aluminium Corporation Ltd v Federal Commissioner of Taxation (1977) 77 ATC 4151 Deputy Commissioner of Taxation v Broadbeach Properties Pty Ltd (2008) 237 CLR 473 Deputy Commissioner of Taxation v Cranswick (No 2) (2010) 189 FCR 287 Deputy Commissioner of Taxation v Hua Wang Bank Berhand (No 3) [2012] FCA 594 Deputy Commissioner of Taxation v Jones (1999) 86 FCR 282 Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168 Federal Commissioner of Taxation v Australian Guarantee Corporation Ltd (1984) 84 ATC 4642 Federal Commissioner of Taxation v Citylink Melbourne Ltd (2006) 228 CLR 1 Federal Commissioner of Taxation v James Flood Pty Ltd (1953) 88 CLR 492 Federal Commissioner of Taxation v Prestige Motors Pty Limited (1994) 181 CLR 1 Federal Commissioner of Taxation v Noza Holding Pty Limited (2012) 201 FCR 445 Hooker Rex Pty Limited v Federal Commissioner of Taxation (1988) 79 ALR 181 Layala Enterprises Pty Ltd (In liq) v Federal Commissioner of Taxation (1998) 86 FCR 348 New Zealand Flax Investments Ltd v Federal Commissioner of Taxation (1938) 61 CLR 179 Nilsen Development Laboratories Pty Limited v Federal Commissioner of Taxation (1981) 144 CLR 616 Re Mendonca; Ex parte Commissioner of Taxation (1969) 15 FLR 256 Taylor v Commissioner of Taxation (1997) 16 FCR 212 W Neville & Co Ltd v Federal Commissioner of Taxation (1937) 56 CLR 290