Lease incentives: capital or income?

Spry, L. Fiona (1999) Lease incentives: capital or income?. Australian Property Law Journal, 7 3: 269-275.

Author Spry, L. Fiona
Title Lease incentives: capital or income?
Journal name Australian Property Law Journal
ISSN 1038-5959
Publication date 1999
Sub-type Article (original research)
Volume 7
Issue 3
Start page 269
End page 275
Total pages 7
Place of publication North Ryde, NSW, Australia
Publisher Butterworths
Collection year 1999
Language eng
Subject C3
720106 Taxation
390105 Corporations and Associations Law
Formatted abstract
Lord Greene in IRC v British Aero Salmson Engines Ltd stated that determining what is income or capital is often `borderline. Indeed, in many cases it is almost true to say that the spin of the coin would decide the matter as satisfactory as an attempt to find reasons.' Such a statement seems to be relevant in the case of FCT v Montgomery, where the High Court, on 5 August 1999, decided in a three four decision that lease incentive payments received by a large firm of solicitors, Freehill Hollingdale and Page (Freehills), is income and thus assessable in the hands of its partners.

The majority of the High Court disapproved the recent decision of Commissioner of Inland Revenue v Wattie. In that case the Privy Council held, on an appeal from the New Zealand Court of Appeal, that in similar circumstances to Montgomery, lease incentives are capital in nature, not income.
Q-Index Code C3

Document type: Journal Article
Sub-type: Article (original research)
Collection: TC Beirne School of Law Publications
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Created: Tue, 10 Jun 2008, 15:18:13 EST