Commissioner of Taxation v Wood [2023] FCA 574

Federal Court of Australia

Commissioner of Taxation v Wood [2023] FCA 574 Appeal from: XPTC and Commissioner of Taxation (Taxation) [2022] AATA 4147

File number: NSD 1162 of 2022

Judgment of: STEWART J

Date of judgment: 2 June 2023

Catchwords: TAXATION – general deduction from assessable income – whether a payment made to settle litigation years after the relevant employment ended qualifies as a general deduction from assessable income under s 8-1 of the Income Tax Assessment Act 1997 (Cth) – whether the loss or outgoing was incurred in gaining or producing assessable income – whether the loss or outgoing is of capital or of a capital nature

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44(1) Income Tax Assessment Act 1997 (Cth) s 8-1

Cases cited: AusNet Transmission Group Pty Ltd v FCT [2015] HCA 25; 255 CLR 439 Clough v Federal Commissioner of Taxation [2021] FCAFC 197; 114 ATR 1 Commissioner of Taxation v Day [2008] HCA 53; 236 CLR 163 Commissioner of Taxation v Rowe [1995] FCA 834; 60 FCR 99 Estate Mortgage Fighting Fund Trust v FCT [2000] FCA 981; 102 FCR 15 FCT v Payne [2001] HCA 3; 202 CLR 93 Federal Commissioner of Taxation v Snowden & Willson Pty Ltd [1958] HCA 23; 99 CLR 431 Fletcher v FCT [1991] HCA 42; 173 CLR 1 Hallstroms Pty Ltd v FCT [1946] HCA 34; 72 CLR 634 Herald & Weekly Times Ltd v Commissioner of Taxation [1932] HCA 56; 48 CLR 113 Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation [1980] FCA 180; 33 ALR 213 Putnin v Commissioner of Taxation [1991] FCA 12; 27 FCR 508 Ronpibon Tin NL and Tongkah Compound NL v FCT [1949] HCA 15; 78 CLR 47 Shokker v Commissioner of Taxation [1999] FCA 600; 92 FCR 54 Sun Newspapers Ltd and Associated Newspapers Ltd v Federal Commissioner of Taxation [1938] HCA 73; 61 CLR 337