The Wade Case: An analysis

The Australian Taxation Office (ATO) considers ALL animals sold as part of a primary production business as trading stock. However, the word ALL is not contained in s 995 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997); rather, the ATO view is based on its interpretation of the findings in F...

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Main Authors: Fullarton, Lex, Pinto, Dale
Format: Journal Article
Language:English
Published: 2021
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/81797
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author Fullarton, Lex
Pinto, Dale
author_facet Fullarton, Lex
Pinto, Dale
author_sort Fullarton, Lex
building Curtin Institutional Repository
collection Online Access
description The Australian Taxation Office (ATO) considers ALL animals sold as part of a primary production business as trading stock. However, the word ALL is not contained in s 995 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997); rather, the ATO view is based on its interpretation of the findings in Federal Commissioner of Taxation v Wade (‘Wade Case’). This paper looks at the cases examined by their Honours in the Wade Case and similar cases related to the sale of livestock. It argues that the findings of the Wade Case may have been misinterpreted and that the ATO’s view is not as valid as is generally accepted. It argues that the revenue from sale of stud, or breeding, animals should be taxed under the capital gains tax provisions of the ITAA 1997 and not as income according to ordinary concepts.
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spelling curtin-20.500.11937-817972021-01-07T01:20:33Z The Wade Case: An analysis Fullarton, Lex Pinto, Dale Livestock Trading Stock Breeding stock Capital Gains Tax Business expenditure Income tax deductions The Australian Taxation Office (ATO) considers ALL animals sold as part of a primary production business as trading stock. However, the word ALL is not contained in s 995 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997); rather, the ATO view is based on its interpretation of the findings in Federal Commissioner of Taxation v Wade (‘Wade Case’). This paper looks at the cases examined by their Honours in the Wade Case and similar cases related to the sale of livestock. It argues that the findings of the Wade Case may have been misinterpreted and that the ATO’s view is not as valid as is generally accepted. It argues that the revenue from sale of stud, or breeding, animals should be taxed under the capital gains tax provisions of the ITAA 1997 and not as income according to ordinary concepts. 2021 Journal Article http://hdl.handle.net/20.500.11937/81797 English restricted
spellingShingle Livestock
Trading Stock
Breeding stock
Capital Gains Tax
Business expenditure
Income tax deductions
Fullarton, Lex
Pinto, Dale
The Wade Case: An analysis
title The Wade Case: An analysis
title_full The Wade Case: An analysis
title_fullStr The Wade Case: An analysis
title_full_unstemmed The Wade Case: An analysis
title_short The Wade Case: An analysis
title_sort wade case: an analysis
topic Livestock
Trading Stock
Breeding stock
Capital Gains Tax
Business expenditure
Income tax deductions
url http://hdl.handle.net/20.500.11937/81797