Federal Commissioner of Taxation v Ryan [1926] HCA 59

Federal Commissioner of Taxation v Ryan [1926] HCA 59

The operations on Vindex Station constituted a distinct business separate from the other grazing operations; the sale was a sale of a business for the purposes of sec. 17, and proceeds from trading stock are assessable income except for live-stock ordinarily used for breeding.

Source-derived case information.

Parties
Appellant: Federal Commissioner of Taxation; Respondent: Michael Ryan
Jurisdiction
Australia
Judgment Date
12 October 1926
Procedural Posture
Appeal / Full Court (appeal From Knox C.j.)
Outcome
Appeal dismissed with costs.
Legal Topics
Income Tax, Trading Stock, Sale of Business, Assessment of Income, Sheep Breeding and Wool Growing
Taxation Law Income Tax Trading Stock Sale of Business Assessment of Income Sheep Breeding and Wool Growing

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Parties

Federal Commissioner of Taxation

Appellant

Michael Ryan

Respondent

Procedural Posture

Appeal / Full Court (appeal From Knox C.j.)

Legal Issues

  1. 1 Whether the sale of Vindex Station constituted a sale of a business within the meaning of sec. 17 of the Income Tax Assessment Act 1922-1924
  2. 2 Whether proceeds from sale of trading stock on Vindex Station were assessable income, and whether breeding stock should be excluded under sec. 17(4)

Ratio Decidendi

The operations on Vindex Station constituted a distinct business separate from the other grazing operations; the sale was a sale of a business for the purposes of sec. 17, and proceeds from trading stock are assessable income except for live-stock ordinarily used for breeding.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed.
  • Costs ordered against the appellant.