Oswal v Commissioner of Taxation [2013] FCA 745

FEDERAL COURT OF AUSTRALIA

Oswal v Commissioner of Taxation [2013] FCA 745 Citation: Oswal v Commissioner of Taxation [2013] FCA 745

Parties: RADHIKA PANKAJ OSWAL, PANKAJ OSWAL and PANKAJ OSWAL AS TRUSTEE OF THE BURRUP TRUST v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File numbers: NSD 850 of 2012 NSD 851 of 2012 NSD 852 of 2012

Judge: EDMONDS J

Date of judgment: 31 July 2013

Catchwords: INCOME TAX – Part 3-1 Income Tax Assessment Act 1997 (Cth) – capital gains – exercise of special power of appointment by trustee of discretionary trust in respect of part of corpus for absolute benefit of some but not all objects – whether trust created over assets by "declaration" of trust or "settlement" under s 104-55 (CGT event E1) – whether objects became absolutely entitled to assets so appointed as against the trustee under s 104-75 (CGT event E5) – whether disposal of an asset (CGT event A1)

Legislation: Income Tax Assessment Act 1997 (Cth) ss 104-10, 104-55, 104-75, 108-5, 855-15, 855-20, 995-1 Taxation Administration Act 1953 (Cth) Pt IVC Income Tax Assessment Act 1936 (Cth) Div 6 Finance Act 1965 (UK) s 25 Stamps Act 1892 (Vic) Part VIII of the Schedule Trustee's Act 1962 (WA) s 28 Federal Court Rules 2011 r 30.01

Cases cited: A & G Lamattina & Sons Pty Ltd v Commissioner of State Revenue (1996) 96 ATC 4474 cited Burns v Leda Holdings Pty Ltd [1988] 1 Qd R 214 distinguished Buzza v Comptroller of Stamps (Vic) (1951) 83 CLR 286 cited Byrnes v Kendall (2010–11) 243 CLR 253 cited Chief Commissioner of Stamp Duties (NSW)v Buckle (1998) 192 CLR 226 discussed Commissioner of Stamp Duties (Q) v Hopkins (1945) 71 CLR 351 cited Commissioner of Stamp Duties (Qld) v Livingston [1965] AC 694 cited Commissioner of State Revenue v Lam & Kym Pty Ltd (2004) 10 VR 420 approved/followed Davidson v Armytage (1906) 4 CLR 204 cited DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties (NSW) (1981-82) 149 CLR 431 discussed Foakes v Jackson [1900] 1 Ch 807 cited Herdegen v Federal Commissioner of Taxation (1988) 84 ALR 27 cited In re Hancock [1896] 2 Ch 173 cited Inland Revenue Commissioner v Cookson [1977] 2 All ER 331 cited Kafataris v Deputy Commissioner of Taxation (2008) 172 FCR 242 followed Kemtron Industries Pty Ltd v Commissioner of Stamp Duties [1984] 1 Qd R 576 distinguished Kent v SS "Maria Luisa" (No 2) (2003) 130 FCR 12 cited Massereene v Commissioner of Inland Revenue [1900] 2 Ir R 138 cited Oswal v Yara Australia Pty Ltd [No 3] [2011] WASC 255 not followed Roome v Edwards [1982] AC 279 distinguished Stephenson v Barclays Bank Trust Company Ltd [1975] 1 WLR 882 cited Thomson v Federal Commissioner of Taxation (1949) 80 CLR 344 cited Underhill and Hayton: Law Relating to Trusts and Trustees (18th ed, LexisNexis, 2010)