References: (1932) 48 CLR 113,  HCA 56
Coram: Gavan Duffy CJ and Dixon J
Ratio: (High Court of Australia) The taxpayer newspaper sought to set off against its liability to income tax, sums which it had paid out in damages for defamation.
Held: They were deductible. Such claims against a newspaper are a ‘regular and almost unavoidable incident of publishing it’ and the damages are compensatory rather than punitive.
This case is cited by:
- Cited – McKnight (Inspector of Taxes) v Sheppard HL (Times 18-Jun-99, Gazette 07-Jul-99, House of Lords, Bailii,  UKHL 6,  1 WLR 1333,  3 All ER 491)
The taxpayer sought to set off against tax some pounds 200,000 spent defending professional disciplinary proceedings. The House was asked whether this was ‘money wholly and exclusively laid out or expended for the purposes of the trade.’
Held: . .
(This list may be incomplete)
Last Update: 15 June 2020
Ref: 266054 br>