Cheung v Commissioner of Taxation [2024] FCA 1370

Federal Court of Australia Cheung v Commissioner of Taxation [2024] FCA 1370 File number:

Judgment of: LOGAN J

Date of judgment: 29 November 2024

Catchwords: INCOME TAX – where the applicant taxpayer received some $33 million in receipts from bank accounts in Vanuatu between the 2005 and 2015 income years – where the applicant's sister, and her wider family, owned a successful supermarket business in Vanuatu – where the applicant worked as a general manager in that business before retiring to Australia in 2000 – where the applicant's evidence that the receipts were capital transfers in the nature of gifts of the wider family accepted – whether the transfers from Vanuatu constituted income under ordinary concepts – appeal allowed

Evidence Act 1995 (Cth) s 140 Federal Court of Australia Act 1976 (Cth) s 37M Legislation: Income Tax Assessment Act 1936 (Cth) s 25 Income Tax Assessment Act 1997 (Cth) s 6-5 Taxation Administration Act 1953 (Cth) ss 14ZZ, 14ZZO

Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Eisner v Macomber (1920) 252 US 189 Federal Coke Co Pty Ltd v Federal Commissioner of Taxation (1977) 34 FLR 375 Federal Commissioner of Taxation v Blake [1984] 2 Qd R 303 Federal Commissioner of Taxation v Dalco (1990) 168 CLR 614 Federal Commissioner of Taxation v McNeil (2007) 229 CLR 656 Cases cited: Federal Commissioner of Taxation v Montgomery (1999) 198 CLR 639 Federal Commissioner of Taxation v Stone (2005) 222 CLR 289 Gauci v Federal Commissioner of Taxation (1975) 135 CLR 81 Hayes v Federal Commissioner of Taxation (1956) 96 CLR 47 Jacobellis v. Ohio, 378 U.S. 184 (1964) Melbourne Steamship Co Ltd v Moorehead (1912) 15 CLR 333 Scott v Commissioner of Taxation (1935) 35 SR (NSW) 215 Scott v Federal Commissioner of Taxation (1966) 117 CLR 514