BA 3301 Lecture Notes - Lecture 46: Capital Asset, Owen Dixon, Indictable Offence
Document Summary
(cid:120) broken hill theatres pty ltd v fct (1952) clr 423. Facts: taxpayer incurred legal costs to prevent a potential new exhibitor obtaining a license to operate a motion picture theatre. Decision: not deductible as they were of a capital nature. Associated portland content manufacturers ltd v fct (1938) at p 71) described as the goodwill of the business (cid:120) capital account: Cost of acquiring a capital asset (may differ if consideration is not a lump sum) Cost of acquiring rights (cid:120) revenue account: Payments related to the quantity removed are royalties on revenue account, e. g. mccauley v fct (1944) Interest on loan to acquire a capital asset is on revenue account, e. g. steele v fct. Outgoings to defend title to an asset (cid:120) capital account if: Business entity is in peril or under substantial threat. Loss or physical destruction of assets (cid:120) revenue account if: Exploiting a position or defending against business hazard less than perilous.
