Commissioner of Taxation v Rowntree [2020] FCA 1322

Federal Court of Australia

Commissioner of Taxation v Rowntree [2020] FCA 1322 File number: NSD 655 of 2014

Judgment of: RARES J

Date of judgment: 18 September 2020

Catchwords: TAXATION – Whether each respondent engaged in conduct that resulted in him or another entity being a promoter of a tax exploitation scheme in each of 4 tax years in contravention of s 290-50(1) of Sch 1 to the Taxation Administration Act 1953 (Cth) – where scheme involved investor paying 15% non-refundable deposit for not presently existing carbon or REDD credits that vendor had no existing source for or obligation to supply in the future – where investor under scheme claimed tax deduction of full price in year of entry into purchase contract – whether each respondent promoter of tax exploitation scheme within meaning of ss 290-60(1) and 290-65 – whether entity had substantial role in respect of marketing or promotion of tax exploitation scheme within meaning of s 290-60(1)(c) – whether investor's sole or dominant purpose for entering into scheme was to get a scheme benefit that was not reasonably arguably available at law within meaning of ss 284-15, 284-150 and 290-65 – whether schemes involved tax evasion within meaning of s 290-55(6) so that 4 year limitation period did not apply

Legislation: Evidence Act 1995 (Cth), ss 50, 140 Income Tax Assessment Act 1936 (Cth) Pt IVA, ss 170, 177D, 177F, 318, 82KZL, 82KZM, 82KZMA Income Tax Assessment Act 1997 (Cth), ss 8-1, 960-100, 995-1 Partnership Act 1892 (NSW) s 50A Taxation Administration Act 1953 (Cth) Sch 1, ss 284-15, 284-150, 290-50, 290-55, 290-60, 290-65 Carbon Pollution Reduction Scheme Bill 2009 Explanatory Memorandum for the Carbon Pollution Reduction Scheme Bill 2009 [No 2] Oxford English Dictionary, online Macquarie Dictionary, online Adjunct Professor Gordon S. Cooper AM: "Promoter Penalties" (2006) 4 Journal of Tax Research 117 Diplock K, "The Courts as Legislators" in B Harvey (ed), The Lawyer and Justice (Sweet & Maxwell, 1978)