August v Commissioner of Taxation [2012] FCA 682

The properties in question were acquired for the purpose of profit-making by sale; the profits from their sale are assessable as income according to ordinary concepts and are not capital gains.

Jurisdiction: Australia
Judgment Date: 28 June 2012
Procedural Posture: Appeal / Judgment
Outcome: Appeal dismissed with costs
Legal Topics: ['income Tax Assessment' 'profit From Property Sales' 'income Vs Capital Gains' 'purpose of Property Acquisition']

['taxation'] ['income Tax Assessment' 'profit From Property Sales' 'income Vs Capital Gains' 'purpose of Property Acquisition']

Case Brief

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Procedural Posture

Appeal / Judgment

Legal Issues

1 ['Whether profits from sale of properties were income according to ordinary concepts or capital in nature' 'Whether properties were acquired for the purpose of profit-making by sale']

Ratio Decidendi

The properties in question were acquired for the purpose of profit-making by sale; the profits from their sale are assessable as income according to ordinary concepts and are not capital gains.

Court Disposition

Appeal dismissed with costs

Orders

['The appeals be dismissed.' "The applicant pay the respondent's costs (not including those dealt with by orders made on 17 February 2011 and 7 April 2011)." 'Subject to any appeal, the original exhibits be returned to the party by whom they were tendered after 28 days.']