Jones, Griffith Morgan & Ors v Mortgage Acceptance Nominees Ltd & Ors Jones, Griffith Morgan & Ors v C E Heath Casualty & General Insurance Ltd [1996] FCA 301

Jones, Griffith Morgan & Ors v Mortgage Acceptance Nominees Ltd & Ors Jones, Griffith Morgan & Ors v C E Heath Casualty & General Insurance Ltd [1996] FCA 301

The damages payable to the applicants will not be taxable in whole or in part because they are damages for loss arising from breach of the Trade Practices Act 1974 (Cth), negligent conduct and breach of fiduciary duty, not income or receipts of a profit making undertaking or scheme. The damages should be reduced by taxation benefits received for the 1989, 1990 and 1991 taxation years because those benefits reduced the applicants' loss.

Jurisdiction
Australia
Judgment Date
25 March 1996
Procedural Posture
Damages and Taxation / Reasons for Judgment
Outcome
Damages to be assessed by taking into account taxation benefits received in the 1989, 1990 and 1991 taxation years; damages not taxable in whole or in part in the applicants' hands.
Legal Topics
['assessability of Damages' 'assessment of Damages' 'tax Benefits in Damages Assessment' 'income Tax Deductions']
['taxation' 'damages' 'trade Practices' 'negligence' 'fiduciary Duties'] ['assessability of Damages' 'assessment of Damages' 'tax Benefits in Damages Assessment' 'income Tax Deductions']

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Procedural Posture

Damages and Taxation / Reasons for Judgment

Legal Issues

  1. 1 ['Whether damages awarded to the applicants would be assessable income in their hands.' 'Whether taxation benefits claimed and received by the applicants should reduce the damages awarded.']

Ratio Decidendi

The damages payable to the applicants will not be taxable in whole or in part because they are damages for loss arising from breach of the Trade Practices Act 1974 (Cth), negligent conduct and breach of fiduciary duty, not income or receipts of a profit making undertaking or scheme. The damages should be reduced by taxation benefits received for the 1989, 1990 and 1991 taxation years because those benefits reduced the applicants' loss.

Court Disposition

Damages to be assessed by taking into account taxation benefits received in the 1989, 1990 and 1991 taxation years; damages not taxable in whole or in part in the applicants' hands.

Orders

  • ['The costs of today should be costs in the proceedings.']