Tagget v Commissioner of Taxation [2010] FCAFC 109

Tagget v Commissioner of Taxation [2010] FCAFC 109

The appellant's receipt of the parcel of land in 2005 was consideration for services rendered and constitutes ordinary income derived in the 2005/2006 taxation year; the money value of the land must be determined as at the time it is paid or given, not at the time when a conditional right was acquired. The appeal is dismissed because the primary judge's assessment was correct under the applicable legislation.

Jurisdiction
Australia
Judgment Date
08 September 2010
Procedural Posture
Appeal / Judgment on Appeal From Single Judge Decision
Outcome
Appeal dismissed
Legal Topics
['income Tax' 'assessment of Non Cash Business Benefits' 'timing and Valuation of Income' 'remuneration for Services']
['taxation Law'] ['income Tax' 'assessment of Non Cash Business Benefits' 'timing and Valuation of Income' 'remuneration for Services']

Case Brief

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Procedural Posture

Appeal / Judgment on Appeal From Single Judge Decision

Legal Issues

  1. 1 ['Whether land transferred to the appellant constituted ordinary income within the meaning of s 6-5(2) Income Tax Assessment Act 1997 (Cth)' 'Whether the land should be valued as at the date the appellant acquired a conditional right to the land or as at the date of the actual transfer']

Ratio Decidendi

The appellant's receipt of the parcel of land in 2005 was consideration for services rendered and constitutes ordinary income derived in the 2005/2006 taxation year; the money value of the land must be determined as at the time it is paid or given, not at the time when a conditional right was acquired. The appeal is dismissed because the primary judge's assessment was correct under the applicable legislation.

Court Disposition

Appeal dismissed

Orders

  • ['The appeal be dismissed' "The appellant pay the respondent's costs of the appeal"]