High Court of Australia
High Court of Australia Menzies, J. Commissioner of Taxation (Cth) v Wells
ORDER Order Appeal allowed. By consent, appellant to pay respondent's costs of the appeal. Assessment by Commissioner of Taxation confirmed. Usual order as to exhibits. Menzies, J
The taxpayer, a partner in a firm of chartered accountants, Spry Walker & Co., claimed as a deduction in the assessment of his taxable income for the year ended 30 June 1967 a sum of $125 which he had, during the tax year, paid by way of premiums upon insurance policies upon the lives of his partners. Details of the payments were as follows:—
1. $59 of the premium upon a convertible temporary insurance for $20,000, without participation, on the life of R. A. Ringwood for five years from 2 August 1966, with the option to convert it to whole-of-life or endowment assurance without evidence of health.
2. $59 of the premium upon a temporary assurance for $20,000, without participation, upon the life of J. L. Blacket for five years from 4 August 1966.
3. $5 of the premium upon an accidental death policy for the period from 27 April 1967 to 27 April 1968 for $20,000 upon the life of R. D. Church.
4. $2 of the premium upon an accidental death policy for the period from 27 April 1967 to 27 April 1968 for $10,000 on the life of T. Duncanson.
The foregoing policies were effected by agreement of the partners. The Ringwood policy was taken out by the taxpayer with Blacket and Church; the Blacket policy with Ringwood and Church; the Church policy with Ringwood and Blacket; and the Duncanson policy with Ringwood, Blacket and Church. There was also a policy for $20,000 on the life of the taxpayer taken out by Ringwood, Blacket and Church. The policies in which the taxpayer was interested as an insurer were owned and premiums were payable as follows:— 1. The Ringwood policy: The taxpayer 21/58ths Blacket 21/58ths Church 16/58ths; 2. The Blacket policy: The taxpayer 21/58ths Ringwood 21/58ths Church 16/58ths; 3. The Church policy: The taxpayer, Ringwood and Blacket in equal shares; 4. The Duncanson policy: The taxpayer, Ringwood, Blacket and Church in equal shares.
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