Crowe v Commissioner of Taxation [1958] HCA 32

Cons Pa

Commissioner

if v Sahhar. 1985) 59 LR

H.C. or A.

1958. we

Busspane, June 27;

Sypyey, Aug. 1.

Fullagar J.

HIGH COURT

{HIGH COURT OF AUSTRALIA.)

CROWE " Z 7 3 . % ' '

AND

COMMISSIONER OF TAXATION . :

Income Tax (Cth.)—Assessable income—Allowable deduction—Insurance p on life of taxpayer—Taxpayer member of partnership of four—Policy one of effected by partnership on the separate lives of partners—Sums assured to the four partners their executors administrators and assigns as tenants in —Premiums paid to insurance company by partnership's bank in p

bank order given by the partnership—Debited to partnership bank acco partner debited in books of partnership with amount of premium paid on policy on his life—Income Tax and Social Services Contribution Act 1936-1954, s, 82H (1) (a) (i).

A partnership effected four life insurance policies, one on each of the live its partners, for the benefit of all four partners, their executors

and assigns as tenants in common. The premiums were paid to the in: company by the partnership's bank in pursuance of an order given partnership and debited by the bank to the partnership account. the partners was debited in the books of the partnership with the the premium paid on the policy on his life. One of the partners deduction from her income the amount of the premium with which been debited in the books of the partnership.

Held, that the premium paid on the policy on the life of a partner ws an allowable deduction from the income of that partner under s. of the Assessment Act 1936-1954 because it was not paid by the was paid and payable by the partnership, and that fact could not be or affected by any antecedent or subsequent agreement among the part

Wilson v. Simpson (1926) 2 K.B. 500, followed.

Semble, a taxpayer is not entitled to a deduction under s. 82H (1) unless the premium is not only paid by him but payable by him by a contract of insurance between him and an insurer.