In the field of taxationation, when it comes to allowable deduction, taxpayers often face with the contend of find fall out whether a specific amount is income to be allowable or crown or of chapiter record which is non allowable at a lower induct s8-1(2) of the ITAA 1997 [1]. This leads to the discussion on characterising an amount to be detonator or of upper-case letter nature. The purpose of this essay is to address and critically crumble how the dally seeks to determine the characteristics of an amount to close it is on capital account through the case of St George curse exceptional v FCT [2008] FCA 453. As a result of the takeover, SGB?s capital sufficiency ratios decreased below that required by the conquer Bank of Australia as a condition of holding an Australian banking license. In order to satisfy the required ratio, St George Funding telephoner LLC (LLC) was naturalised and capitalised in the amount of US$107.2 billion by piece subscription of commo n stock. LLC then lent US$350 million to SGB below an indenture, and a debenture was issued by SGB to LLC. SGB claimed deduction for liaison payable to LLC pursuant to the debenture but the Federal Court held that the payments of lodge in were outgoings of capital or of a capital nature, and so were not deductible under the general deduction planning of the tax law.
The ratio of this case is the nature of deductibility of an amount under capital or revenue account based on the mount of the transactions. From the perspective of the case Sun Newspapers v FCT (1938) 61 CLR 337, the belief emphasized is the chara cteristic of incurring expenditure [2]. The ! tests band out by Dixon J need to be examined to conclude it is deductible or not. The first test examines the character of advantage... If you demand to fuck off a full essay, order it on our website:
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