Commissioner of Taxation v Brown [1999] FCA 721

Commissioner of Taxation v Brown [1999] FCA 721

Interest payments made after the sale and cessation of the business were deductible under s 51(1) because the originating occasion of the liability was the bank loan entered to acquire the business; the cessation of business did not break the nexus for deductibility during the relevant financial years.

Jurisdiction
Australia
Judgment Date
03 June 1999
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed with costs
Legal Topics
['income Tax' 'allowable Deductions' 'interest Payments' 'business Cessation' 'deductibility After Sale of Business']
['taxation Law'] ['income Tax' 'allowable Deductions' 'interest Payments' 'business Cessation' 'deductibility After Sale of Business']

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Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 ['Whether interest paid on the balance of a loan after cessation of business is deductible under s 51(1) of the Income Tax Assessment Act 1936 (Cth)']

Ratio Decidendi

Interest payments made after the sale and cessation of the business were deductible under s 51(1) because the originating occasion of the liability was the bank loan entered to acquire the business; the cessation of business did not break the nexus for deductibility during the relevant financial years.

Court Disposition

Appeal dismissed with costs

Orders

  • ['The appeal be dismissed with costs']