Nexus: FCT v Scott (1966) 117 CLR 514

Caselaw in taxation: FCT v Scott (1966)

  • The case:
    • A solicitor acted for a client. He was given € 10,000 by the client.
  • The decisions:
    • The Court found that the payment was a gift:
      • The definition of “income from personal exertion” in s 6 of the Income Tax and Social Services Contribution Assessement Act 1936-1961 does not bring anything into change as income. It refers to what is already by its nature income. By describing what “income from personal exertion” is, the definition is indirectly indicative of what income is. But that is all.
      • That s 26 of the Act makes it clear that the income of a taxpayer who is engaged in an employment or in the rendering of any services for remuneration includes the value to him of everything which he in fact gets whether in money or in kind or however it may be described, which is a product or incident of his employment or a reward for his services. The enactment does not bring to tax moneys or moneys’ worth that are not income according to ordinary concepts.
      • In this case, the money was gratuitous; not made discharge of an obligation; not taken by the recipient as discharging an obligation

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