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.}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 \fs24\lang3081\langfe1033\cgrid\langnp3081\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 IN THE SUPREME COURT, FIJI ISLANDS \par AT SUVA \par }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 CIVIL APPEAL}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 NO. CBV0006}{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 OF 2002S \par (Court of }{\lang2057\langfe1033\langnp2057\insrsid11103579\charrsid5066989 Review No. 7 of 1996}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 S)}{\lang2057\langfe1033\langnp2057\insrsid2961249 \par }\pard \qj \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5066989\charrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 BETWEEN:}{\lang2057\langfe1033\langnp2057\insrsid2961249 \par }\pard \qj \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5066989\charrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\b\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 CHIMAN LAL JAMNADAS}{\b\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }{\b\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 MICHELLE APARTMENTS LIMITED \par PRIMETIME PROPERTIES LIMITED \par }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 Appellant}{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid2961249 \par }\pard \qj \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5066989\charrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 AND:}{\lang2057\langfe1033\langnp2057\insrsid2961249 \par }\pard \qj \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5066989\charrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\b\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 COMMISSIONER OF INLAND REVENUE}{ \b\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 Respondent \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par Coram:\tab Hon Justice Daniel Fatiaki}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \endash }{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid208551\charrsid5066989 President of Supreme Court}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par Hon Justice Robert French}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \endash }{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 Judge of Supreme Court \par }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 Hon Justice }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 Kenneth Handley}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \endash }{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 Judge of Supreme Court}{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par \par Hearing:}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 Wednes}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 day, 1}{ \lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 5}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 th October 2003, Suva \par \par Counsel:}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 Mr}{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 J. Greenwood, QC}{ \lang2057\langfe1033\langnp2057\insrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid208551\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 Mr M. Arjun}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 for the Appellant}{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid5066989 Ms S. Tagicaki, }{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 Ms Riti Ali}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 for the Respondent}{\lang2057\langfe1033\langnp2057\insrsid16019666\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par \par Date of Judgment:}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 Friday, 24th October 2003, Suva}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\b\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 JUDGMENT OF THE COURT \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 \tab This appeal, by le ave granted by the Court of Appeal (Sheppard, Tompkins, Smellie, JJA, 31 May 2002) from the decision of that Court (Reddy P, Barker and Davies, JJA, 1 March 2002) raises two questions of importanc}{ \lang2057\langfe1033\langnp2057\insrsid208551\charrsid5066989 e under the Income Tax Act 1985}{\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid208551\charrsid5066989 (}{ \lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 Cap. 201}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 Rev. 1985).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 The first relates to the travelling and associated expenses incurred by the appellants in connection with travel by Mr Jamnadas}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 from Adelaide where he lived, to Suva. }{\lang2057\langfe1033\langnp2057\insrsid208551\charrsid5066989 T}{\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 he second relates to penalty tax assessed on the second appellant, Michelle Apartments Limi ted (Michelle) under ss.94 and 100(2) for late lodgement of its returns, and the powers of the Court of Review and High Court on appeal to review the assessments in this respect. \par \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 The First Issue \par }{\lang2057\langfe1033\langnp2057\insrsid12280314\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 \tab The facts as found by the Court of Review }{\lang2057\langfe1033\langnp2057\insrsid3237710\charrsid5066989 and }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 the High Court }{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 were that Mr Jamnadas}{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 practised as a barrister and solicitor in Suva until 1988 when he moved with his family to Adelaide for the purpose of educating his children.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 Thereafter he progressively wound down his legal practice until it ceased at the end of 1990.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 In 1982 he had }{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 acquired}{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 control }{ \lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 of Michelle }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 and in 1987 he }{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 acquired}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 control of the third appellant Primetime }{\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 Proper}{ \lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 ties Limited (Primetime).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 Both companies owned }{ \lang2057\langfe1033\langnp2057\insrsid3237710\charrsid5066989 valuable}{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 real estate and carried on associated business activities in Suva.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 Mr Jamnadas also had an interest in }{ \lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 a}{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 deceased estate which received income from sources in Fiji. \par \par \tab Following his move to Adelaide Mr Jamnadas began to travel regularly to Suva and to remain there for considerable periods to look after his various business interests and the interests of Michelle and Primetime.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 He had no business interest}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 in Australia.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 When he came to Fiji he travelled by}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 air to Nadi and by bus to Suva where he stayed at the then Travelodge Hotel.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 While at the Travelodge he incurred expenses for accommodation, meals, laundry, dry cleaning, faxes, and telephone calls (associated expenses).}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 He stayed at the Travelodge because of its central location}{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 and }{ \lang2057\langfe1033\langnp2057\insrsid3237710\charrsid5066989 its}{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 telephone and fa}{\lang2057\langfe1033\langnp2057\insrsid4008839\charrsid5066989 csimile transmission facilities}{ \lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 After his business in Suva had been completed he returned to Nadi by bus, stayed overnight and then flew back to Australia. \par \par \tab The actual travelling and associated expenses incurred in connection with th}{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 ese}{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 business trips}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 to Suva were agreed }{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 during }{ \lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 the proceedings in the Court of Review}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 as was the }{ \lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 ap}{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 portion}{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 ment of }{ \lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 those expenses between the three }{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 appellants.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 In this Court, although not }{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 below, the}{\lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 proceedings have }{\lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 been}{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 conducted }{ \lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 on the basis that no }{\lang2057\langfe1033\langnp2057\insrsid14029531\charrsid5066989 separate}{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 q}{ \lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 uestion arise}{\lang2057\langfe1033\langnp2057\insrsid3237710\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 in relation to}{ \lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 the associated expenses}{\lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 so that these will be deduct}{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 i}{ \lang2057\langfe1033\langnp2057\insrsid15693781\charrsid5066989 ble}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 if the travelling expenses are deductible }{ \lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 but}{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 not otherwise.}{\lang2057\langfe1033\langnp2057\insrsid14699266\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \tab The first issue turns on s.19(a)}{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 and }{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 (b) of the Act which are relevantly as follows:- \par }{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \'93}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 In determining total income, no deductions shall be allowed}{\b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 \par }\pard \ql \fi720\li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 in respect of \endash \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 \par {\listtext\pard\plain\b\i\lang2057\langfe1033\langnp2057\langfenp1033\insrsid5397297\charrsid5066989 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard \ql \fi-720\li2160\ri0\nowidctlpar \jclisttab\tx2160\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin2160\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 personal and living expenses \'85; \par }\pard \ql \li1440\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 \par {\listtext\pard\plain\b\i\lang2057\langfe1033\langnp2057\langfenp1033\insrsid5397297\charrsid5066989 \hich\af0\dbch\af0\loch\f0 (b)\tab}}\pard \ql \fi-720\li2160\ri720\nowidctlpar \jclisttab\tx2160\aspalpha\aspnum\faauto\ls1\adjustright\rin720\lin2160\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 any disbursement or expense not be}{ \b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 ing}{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 money wholly and exclusively laid }{\b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 out or expended for the purpose}{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 of the trade, busine}{\b\i\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 ss, profession, employment or vo}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 cation of the taxpayer;\'94 \par }\pard \ql \li1440\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 As this}{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 Court said in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 Sweetman }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9720898\charrsid5066989 v.}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 Co mmissioner of Inland Revenue}{\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 (23 October 1996) at page 9:- }{\lang2057\langfe1033\langnp2057\insrsid2961249\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \'93Section 19(b) is identical to all inten}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 ts}{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 and purposes with Rule 1 of Schedule D of section 100 of the Income Tax Act}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 1842 }{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 (UK).}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 There is a body of English authority which throws light on the meaning of this provision}{\b\i\lang2057\langfe1033\langnp2057\insrsid11472447\charrsid5066989 and its successors. \'93}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5397297\charrsid5066989 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid11472447\charrsid5066989 \tab \par }\pard \ql \li0\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid6124197 {\b\i\lang2057\langfe1033\langnp2057\insrsid8478132\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid11472447\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 The Court of Review (} {\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 The Hon. M.}{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 J.C. Saunders) in his decision (6 October 1997) held that the travelling expenses incurred in and after 1989 should be disallowed }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 under s.}{ \lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 1}{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 9}{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 (b)}{ \lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 in }{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 accordance with the decision in }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 Newso}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 m}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 v}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 .}{\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 }{\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 .}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 Robertson}{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 [1953] C}{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 h 7 (CA)}{ \lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 on the }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 comparable pr}{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 ovision in schedule }{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 D}{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 The Court of Review also followed the decision of the House of Lords in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 Ri}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 cketts v}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 .}{\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 Colquhoun}{ \lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 [1926] A.C.1 which }{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 re}{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 j}{ \lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 ected }{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 a claim to deduct travelling expenses under the }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 pr}{ \lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 ovisions of }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 S}{\lang2057\langfe1033\langnp2057\insrsid934596\charrsid5066989 chedule E }{ \lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 governing the taxation of the emoluments of an office or employment.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11472447\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 \tab The tax}{\lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 payers appealed to the High Court from the disallowance of the travelling expenses and their appeals we re allowed }{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 by }{\lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 Byrne J (24 August 1999).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 His Lordship}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14945376\charrsid5066989 characterised }{ \lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 the travelling expenses in issue }{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 as expenses incurred }{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 on}{ \lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 business trips }{\lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 which, as such, }{\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 were deduct}{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 i}{\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 ble.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 He distinguished }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 Newso}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 m}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 v}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 .}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 Robertson}{\lang2057\langfe1033\langnp2057\insrsid9401127\charrsid5066989 on the ground that that case was concerned with the cost of daily }{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 commuting which he }{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 characterised}{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 as an expense of daily living.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 Byrne J }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 a}{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 lso distinguished }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 Ricketts v. }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 Colquhoun}{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 on the ground that it }{ \lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 was}{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 decide}{ \lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 d}{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 under }{ \lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 the stri}{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 c}{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 ter }{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 provisions of S}{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 chedule E which were not incorpor}{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 ated in the Fiji Act.}{\lang2057\langfe1033\langnp2057\insrsid4673043\charrsid5066989 \par \par \tab }{\lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 The }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 Commissioner }{ \lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 appealed to the Court of Appeal. A}{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 ppeals to that Court in tax cases, unlike }{ \lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 the general }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 appeals to the Court of Review}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 and the High Court}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9983867\charrsid5066989 are }{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 limited to questi}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 ons of law (Court of Appeal Act}{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 s.12(1)(c)).} {\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 The Court allowed the Commissioner\rquote s appeals}{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 (1 March 2002)}{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 Their Lordships, (Reddy P, Barker and Davies JJA)}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 commenced }{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 their}{ \lang2057\langfe1033\langnp2057\insrsid5440009\charrsid5066989 legal analysis by considering decisions of the High Court of Australia on s.51(1) of the Income Tax Assessment Act}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 1936(Australia) which is }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 in different language}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 , and does not incorporate s.19(a)}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 and }{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 (b) although there is some overlap.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 After considering}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 the leading Australian case on }{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 deductibility of travelling expenses, }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 Lunney }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 v.}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 Federal}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 Commissioner of Taxation}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 (1957) 100 CLR 478 }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 and quoting }{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 extensively from the majority judgment}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 the Court}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 of Appeal}{\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 said:- \par \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 \'93These views accord }{ \b\i\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 with}{\b\i\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 approach taken in the United Kingdom where legislative provisions similar to s.19(b) of the Act }{ \b\i\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 apply}{\b\i\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 .\'93 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 They th}{\lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 en}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 quoted extensively from the judgment of Denning L.J. in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 Newsom v.}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 Robertson}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 .}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 The}{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 y}{\lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 referred to }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 five}{\lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 decisions of the High Court of Australia but in our judgment }{ \lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 their}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 focus on these decisions was}{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 ,}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 with}{\lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 respect}{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 , misdirected. T}{ \lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 he relevant sections of the Fiji Act }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 were }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 base d on United Kingdom legislation and there }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 are}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 long standing decisions of the Courts of that country dealing with the deductibility of travelling expenses which }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 are}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 directly relevant to the Fiji Act.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 T}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 he Australian cases }{ \lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 dealt with a }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 different }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 section}{ \lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 . }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 \par \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 The primary task of a Court construing}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 revenue legislation is to address itself to the statutory text}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 . }{ \lang2057\langfe1033\langnp2057\insrsid6557033\charrsid5066989 The}{\lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 consideration of d}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 ecisions on comp}{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 arable }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 but differing legislation in other countries divert}{\lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 attention from the relevant}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 text in the Fiji legislation.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 In some cases taxation decision}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 in other jurisdiction}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 on similar facts but different legislation ma}{\lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 y be of}{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 limited }{ \lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 assistan}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 ce}{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 by way of analogy where there are no authoritative decisions on the text in the Fiji legislation.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 Such references wi}{ \lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 ll}{\lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 seldom }{ \lang2057\langfe1033\langnp2057\insrsid3561544\charrsid5066989 be helpful }{\lang2057\langfe1033\langnp2057\insrsid6258334\charrsid5066989 where authoritative decisions are available.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid2843289\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid16386332\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 \tab For similar reasons}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 Ricketts v. Colquhoun}{ \lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 (above) and }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 other}{\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 decisions }{ \lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 rejecting claims to deductions for travelling expenses }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 under Schedule E are }{ \lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 of little assistance}{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 However since the deductions allowable under Schedule E are more limited than those allowable under Schedule D decisions such as }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 Pook v. Owen}{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 [1970] AC 244 and }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 Taylor v. Provan} {\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 [1975] AC 194 allowing deductions for travelling expenses }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 are relevant because such deductions w}{ \lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 ould have been allowable under Schedule D}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid9458136\charrsid5066989 \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 In a number of respects these proceedings have been conducted by the parties on a conventional basis.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 In Sweetman (above)}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 this}{\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 Court said (}{ \lang2057\langfe1033\langnp2057\insrsid1727188\charrsid5066989 p}{\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 .17) with reference to section 19(b):- \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid7824219\charrsid5066989 \'93The word \lquote wholly\rquote refers t}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 o the quantum of money expended and the word \lquote exclusively\rquote requires that the money be expended sole}{\b\i\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 l}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 y for the relevant purpose, i.e. for the purpose of the taxpayer}{\b\i\lang2057\langfe1033\langnp2057\insrsid11480021\charrsid5066989 \rquote }{ \b\i\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 s profession\'85..that being essentially a question of fact.}{\b\i\lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 \'94 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 Mr Sweetman was a member of a partnership which carried on a legal practice in Fiji and the deduction allowed by th}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 is}{\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 Court}{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 in that case }{\lang2057\langfe1033\langnp2057\insrsid5526539\charrsid5066989 related to his share of payme}{\lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 nts made by the partnership to }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 clients}{\lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 whose funds ha}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 d}{ \lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 been misappropriated}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11893188\charrsid5066989 by a former partner.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 Under s.51(1) }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 of the Fiji Act}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 a partnership must }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 file a joint tax return but a joint assessment is not issued.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 Instead each partner is assessed }{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 on}{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 his or her share of the net income of the partnership. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 \par \tab }{\lang2057\langfe1033\langnp2057\insrsid15749314\charrsid5066989 Thus t}{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 o some extent the Act }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 treats a}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 partnership as if it were a legal entity distinct from its members and s.19(b) }{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 must be applied }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 accordingly.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 The same view has been taken in }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 United Kingdom.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 See }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid15749314\charrsid5066989 B}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 entley Stokes}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14428340\charrsid5066989 &}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 Lowl}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14428340\charrsid5066989 e}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 ss}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 v. Be}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid14428340\charrsid5066989 e}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 son}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 [1952] 2 All ER 82(CA}{ \lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 ).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 In the present case the}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 expenses were incurred for the benefit of all }{\lang2057\langfe1033\langnp2057\insrsid14428340\charrsid5066989 three}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 taxpayers but they were not partners and}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 could not be assessed jointly.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 The parties dealt with the matter by agreeing to an}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 apportionment}{ \lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 of the expenses between the taxpayers.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 The requirement in s.19(b) that a disbursement or expense be }{\b\i\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 \'93 wholly and exclusively laid out for the purpose of the trade,}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 business, profession, employment or vocation of the taxpayer\'94}{ \lang2057\langfe1033\langnp2057\insrsid14576798\charrsid5066989 might appear at first glance to disallow entirely payments for a single service such as air fares made for the benefit of 2 or more taxpayers which cannot be dissected }{ \lang2057\langfe1033\langnp2057\insrsid9049478\charrsid5066989 into separate payments for }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 purposes of }{ \lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 different taxpayers.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 The Act does not }{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 appear to }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 authorise }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 taxpayers or }{ \lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 the Commissioner to apportion }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 such }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 payments.}{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 This problem has arisen in the United Kingdom }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 in respect of payments}{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 made}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 partly for business and partly for private purposes.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 Inland Revenue Commissioners}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 v. Korner}{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 [1969] 1 WLR 554 (HL) concerned a claim by }{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 a }{\lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 university professor}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 ,}{ \lang2057\langfe1033\langnp2057\insrsid10250438\charrsid5066989 who carried on }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 a farming business and lived in }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 a}{ \lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 house on }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 the farm}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 ,}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 to deduct under Schedule D}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 cost}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 of rates, }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 repairs, maintenance }{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 and insurance }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 on that house.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 Under a special provision dealing with farmers the taxpayer was held entitled to deduct the whole of those costs }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 but}{ \lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 the parties had agreed }{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 that }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 if the general provisions of Sc}{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 hedule D }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 had been applicable, the taxpayer could deduct one tenth of those payments }{ \lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 as }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 being}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 the}{\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 proportion referable }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 to }{ \lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 his business use of the farm house.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 At 558 Lord Upjohn said:-}{ \lang2057\langfe1033\langnp2057\insrsid13507868\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 The result of \'85}{\b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 Schedule D was that, apart altogether from s.526, the farmer occupying a house}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 (no doubt with his wife and children) for the purpose of his farming activities would be entitled to claim a proportion of the reasonable }{ \b\i\lang2057\langfe1033\langnp2057\insrsid1142106\charrsid5066989 and }{\b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 necessary expenditure upon the}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 maintenance of his house as a deduction from his assessment to tax for the purposes of Schedule D.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 This practice is very old, works great justice between the Crown and the subject}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 and I trust will never be disturb}{\b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ed}{\b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 .}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 Th}{\b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 us}{ \b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 speaking generally the gro}{\b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 cer }{\b\i\lang2057\langfe1033\langnp2057\insrsid6638043\charrsid5066989 living above his shop, the doctor who has a surgery in his house and the barrister who works in his house where he keeps or brings his law books and works on his briefs in the evenings}{\b\i\lang2057\langfe1033\langnp2057\insrsid3548056\charrsid5066989 and at weekends is allowed by the Crown a reasonable sum in respect of}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 the necessary upkeep of his dwelling as being properly attributable to his trading or professional activities. }{\b\i\lang2057\langfe1033\langnp2057\insrsid7427839\charrsid5066989 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 \par So that in the present case there is no doubt, and indeed it is not disputed, for I did not understand the Solicitor- General for Scotland to challenge }{\b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 t}{ \b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 his proposition in his reply, that, apart from s.526, the respondents are, in any event, entitled to a proportion of the expenses, and it }{ \b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 is}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 agreed between the parties that this proportion should be}{ \b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 one tenth}{\b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 .}{\b\i\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 \'94}{ \b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 T}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 he practi}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 c}{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 e of the United Kingdom revenue referred to by Lord Upjohn }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 may be t}{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 he basis for the Commissioner}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 \rquote }{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 s practice here }{ \lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 in}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 allowing apportionments such as th}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ose }{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 agreed upon in the present case}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 notwithstanding the }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 l}{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 anguage of s.19(b)}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 T}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 his Court likewise would not wish this practice }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 to }{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 be disturb}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ed}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 .}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 In fact Ms Tagicaki, who argued }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 this part of }{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 the case for the Commissioner}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 said that the Commissioner did not challenge the apportionment of the expenses as between }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 t}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 he }{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 t}{\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 axpayers }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 and did not}{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 rely on the fact that }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 those expenses}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 were incurred }{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 for the purposes of more than one taxpayer. \par }{\lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 The directly relevant cases}{ \lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 on s.19(b)}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 for present purposes are the decisions of the English Court of Appeal in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 [1953] Ch7 and }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 Horton v. Young}{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 [1972] Ch157.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 The first case involved}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 a}{ \lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 claim by a barrister who practised }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 at}{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 the Chancery B}{ \lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ar}{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 in London}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ,}{ \lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 but lived in the country}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 to deduct the cost of travelling regularly to London in term time, and intermittently in vacation.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 The special Com missioners allowed the costs of travel to London during}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 vacation but disallowed the costs incurred during}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 term time.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 T}{ \lang2057\langfe1033\langnp2057\insrsid8408330\charrsid5066989 he High Court}{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 disallowed the }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 whole of the expenditure and the }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 taxpayer\rquote s appeal to the Court of Appeal failed.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 Somervell LJ said that the taxpayer\rquote s home in }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 the}{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 country had nothing to do with his practice because if he }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 lived }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 anywhere else in the country nothing would really be changed (p.14).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 He }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 doubted}{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 if the journeys into and out of London were for the purposes of the taxpayer}{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 \rquote }{ \lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 s profession and said that the fact that the taxpayer intended to and did professional work }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 in his own home d}{ \lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 id not }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 mean that }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 his }{ \lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 homeward }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 journeys}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 were}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 for the purpose of his profession.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid15949861\charrsid5066989 He added that }{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 even }{\lang2057\langfe1033\langnp2057\insrsid12216180\charrsid5066989 if the journeys had a dual }{ \lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 purpose }{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 the expenditure would still have to be disallowed.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 He held also th}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 at}{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 expenditure on }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 the }{ \lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 intermittent journeys }{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 during vacation }{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 should be disallowed as the taxpayer}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 \rquote }{\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 chambers in London remained his professional base. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid16653015\charrsid5066989 \par \tab }{\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 Denning LJ agreed, and in respect of the travelling costs incurred by the taxpayer during vacation he said that the taxpayer}{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 \rquote }{\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 s professional base remain}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 ed}{ \lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 in London throughout and \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 did not cease to be so simply because he }{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 rarely}{\b\i\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 went there during}{\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 vacation.\'94}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 He said (p.16):- \par }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid16219941\charrsid5066989 \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 A distinction must be drawn between living expenses and business expenses.}{\b\i\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 In order to decide }{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 in}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 to which category to put the cost of travelling, }{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 you}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 must look to see what is the base from which the trade, profession, or occupation is carried on.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 In th}{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 e}{ \b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 case of }{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 a}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 tr adesman, the base of his trading operation is his shop.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 In the case of a barrister, it is his chambers. Once he gets to his chambers the cost of travelling to the various courts is incurred}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 wholly and exclusively for the purposes of his profession.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 But it }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 is differen}{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 t with}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 the cost of travelling from his home }{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 to his }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 chambers and back.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 That is incurred because he lives at a distance from his base.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 It}{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 is incurred for the purposes of his living there and not for the purposes of his profession, or any rat e not wholly or exclusively; and this }{\b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 is }{\b\i\lang2057\langfe1033\langnp2057\insrsid9571601\charrsid5066989 so, }{\b\i\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 whether he has a choice in the matter or not.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 It is a living expense as distinct}{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 from a business expense}{\b\i\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 .\'94}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid9855045\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid5513541\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 \tab Romer }{\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 LJ acknowledged that when the taxpayer was due to appear in court he had to travel to }{ \lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 London to }{\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 practi}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 e }{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 h}{\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 is profession in }{ \lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 the}{\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 sense that if he did not do so he would }{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 not earn his fee but}{\lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 continued (}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 p}{\lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 .17):- \par \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 \'93\'85it}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 cannot be said even of the morning journey to work that it is undertaken in order to enable the traveller to exercise his profession;}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 } {\b\i\lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 it is undertaken for the purpose of neutralising the }{\b\i\lang2057\langfe1033\langnp2057\insrsid1650771\charrsid5066989 effect of his departure from his place of business, for private purposes, on the previous evening.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid1650771\charrsid5066989 In other words the object of the journeys, both morning and evening }{ \b\i\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 is not }{\b\i\lang2057\langfe1033\langnp2057\insrsid1650771\charrsid5066989 to enable a man to do his work but to live away from it. \'93 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid13985928\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid1650771\charrsid5066989 He t}{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 o}{\lang2057\langfe1033\langnp2057\insrsid1650771\charrsid5066989 o agreed that no d istinction could be drawn between the cost of the taxpayers regular travel during term time and the cost of his intermittent travel during vacation. \par \par }{\lang2057\langfe1033\langnp2057\insrsid10758261\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 In }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 Newsom v. Robertson}{ \lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 their Lordships}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 considered }{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 that the cost of travel between}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 places at which the taxpayer carried on business was wholly and exclusively laid out for the purposes of the business (see Somervell LJ at 13}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 -14, Denning LJ at 16, and Romer LJ at 18).}{\lang2057\langfe1033\langnp2057\insrsid1650771 \par }{\lang2057\langfe1033\langnp2057\insrsid6124197\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 \tab }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 Horton v. Young }{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 [1972] Ch 157 concerned a claim by }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 a }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 sub-contract }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 brick layer to deduct t he cost of travelling from his home to the building sites where he did his work.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 The taxpayer\rquote s claim was allowed.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 The Court held that the taxpayer\rquote s home was his base of operation and place of business where he negotiated his sub-contracts,}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 kept his tools of trade, and wrote up his books }{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 of }{ \lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 account.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 The Court rejected an argument for the Revenue that the taxpayer carried on his business at each building site so that his expenses of travelling from his home to each building site were covered by the decision in }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid462693\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 \par \tab In }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 Lunney }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 v. }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 Federal Commissioner of Taxation}{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 (1958) 100 }{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 CLR 478 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 the High Court held, by majority}{\lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 that the cost of travelling between one\rquote s home}{ \lang2057\langfe1033\langnp2057\insrsid11293474\charrsid5066989 and}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 one\rquote s place of work was not deductible under the Australian Act, but the Court also considered the English decisions on }{\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 trave}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 l} {\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 l}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 ing}{\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 expenses}{ \lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 After referring to }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 the majority (Williams, Kitto and Taylor JJ) said at 4}{ \lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 99}{\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 . \par }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 \par }\pard \ql \fi-1440\li2160\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin2160\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 \'93\'85}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 a taxpayer\rquote s daily journeys between his }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 home and }{ \b\i\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 place of work }{\b\i\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 are}{\b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14249210\charrsid5066989 rendered necessary}{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 as much by his choice}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 of }{\b\i\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 a}{ \b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 locality for his residence}{\b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 as by his choice of employment o}{\b\i\lang2057\langfe1033\langnp2057\insrsid16456039\charrsid5066989 r}{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 occupation. }{\b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 And indeed the purpose \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 of such journeys is, at least, as much}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 to}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 enable}{\b\i\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 him}{ \b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 to reside at his}{\b\i\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 home \par }{\b\i\lang2057\langfe1033\langnp2057\insrsid9791177\charrsid5066989 as}{\b\i\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid15485570\charrsid5066989 to attend his place of work or business. \'94 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid6124197 \par }{\lang2057\langfe1033\langnp2057\insrsid14814994\charrsid5066989 At page 501 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid14814994\charrsid5066989 majority referred to other English cases decided between 1887 and 1955 other than }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14814994\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid14814994\charrsid5066989 , and said that those cases accept the view that the cost of travelling between home and work}{\b\i\lang2057\langfe1033\langnp2057\insrsid14814994\charrsid5066989 \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 is properly characterised as a personal or living}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 expense.\'94}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 This of course was the view of Denning and Romer LJJ}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 in}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 Newsom v.}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 Robertson.}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 \par \par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 In }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 Lunney}{ \lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 b}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 oth }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 the }{ \lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 majority (at p.498) and Dixon CJ (at pp. 485-}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 6) referred with}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 approval to d}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 icta of the majority }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 Judges in }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 In }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 re the}{\ul\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 INCOME}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 TAX ACTS}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 (1903) 29 VLR}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 298}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 .}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 A \rquote Beckett J (at 305-6) and Hodges J (306-7), while allowin}{\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 g the cost of travel between}{\lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 places where the taxpayer carri}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 ed on business, said that }{ \lang2057\langfe1033\langnp2057\insrsid6965758\charrsid5066989 if the taxpayer had not carried on business}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 from his home on }{ \lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 his}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 graz}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 ing property, the cos t of travelling from his home to Melbourne to attend }{\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 board }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 meetings w}{ \lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 ould not have been allowable.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 The }{ \lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 relevant }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 l}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 egislation contained a provision in much the same term}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 as s.19(b), and the }{ \lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 d}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 icta}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 support the case for the Commissioner here}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 \par \tab Mr Greenwood Q.C.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 for the taxpayers sought to distinguish }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 on the ground that }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 that }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 case concerned the cost of daily commuting to London so that the travelling expenses were part of the}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 taxpayer\rquote s daily living expenses.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 This submission must be rejected because the case also }{ \lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 rejected }{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 taxpayer\rquote s claim to deduct the cost of his}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 intermittent travel to London during vacation which could not be c}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 haracterised as a daily expense.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 Such expenses were }{\lang2057\langfe1033\langnp2057\insrsid15433183\charrsid5066989 still}{ \lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 living or personal expense}{\lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 which w}{ \lang2057\langfe1033\langnp2057\insrsid15549732\charrsid5066989 ere}{\lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 not deductible}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12987517\charrsid5066989 under the equivalent of s.19}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 (b).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 \par \par }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 \tab His other submission}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 which must be noted}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 was }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 th}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 at }{ \lang2057\langfe1033\langnp2057\insrsid10053043\charrsid5066989 Mr Jamnadas}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 \rquote }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 trips w}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 ere }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 business trips }{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 an}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 d the expenses were deductible in the usual way like the cost of any other business trip.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 This submission must also be rejected.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 A typical business trip is one which involves travelling for business purposes from one place w}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 here}{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 a taxpayer }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 or }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 his employer carries on business }{ \lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 (}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 even if }{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 his}{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 trip actually starts from his ho}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 me) }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 to another place where business}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 activities are }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 carried}{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 on}{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 Thus in }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 In }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 re the}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 INCOME TAX ACTS}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 (1903) 29 VLR }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 298 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 the cost incurred by the taxpayer in travelling from his grazing propert y to Melbourne to attend board meetings and earn directors}{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 \rquote }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 fees}{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 was allowed }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 and }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 in }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 T}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 aylor }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 v.}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 P}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 rov}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 a}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 n}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 [1975]}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 AC 194}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 t}{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 he}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 e}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 xpenses}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 incurred}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 b}{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 y}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 the}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 taxpayer}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 in}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 travelling}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 from}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 Canada}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 to the United Kingdom w}{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 ere}{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 deductible under the str}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 ingent provisions of Schedule E} {\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 because he carried on business activities in both countries}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 \tab }{\lang2057\langfe1033\langnp2057\insrsid10052817\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 Mr Jamnadas did not conduct business activities in Adelaide and his trips to Fiji lack}{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 ed}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 the essential requirement of a business trip}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 His trips }{ \lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 did not involve travel from one place where business activities were carried on to }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 an}{ \lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 other place }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 where}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 business activities}{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 were carried on}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 These }{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 trips were for business purpose}{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 in }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 th}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 e sense }{ \lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 t}{\lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 hat }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 Mr Jamnadas}{ \lang2057\langfe1033\langnp2057\insrsid1005613\charrsid5066989 intended to conduct business activities in Suva after he arrived.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 However they were really incurred, like the travelling expenses of the barrister }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 in}{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 Newsom v. Robertson}{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 , because he chose to live away from the place where his business activities were carried on.}{ \lang2057\langfe1033\langnp2057\insrsid5907421\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 \par \tab The fact was that Mr Jamnadas had a home in Adelaide and a place of business in Suva.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 When in Suva he}{ \lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 made the Travelodge Hotel}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 the base of his }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 business }{\lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 operations}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 .}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 It follows therefore the travelling expenses incurred by Mr Jamnadas }{\lang2057\langfe1033\langnp2057\insrsid8007041\charrsid5066989 and t he companies }{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 were not deduc}{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 tible, and}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 the appeal }{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 in this respect }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 must fail.}{ \lang2057\langfe1033\langnp2057\insrsid12155405\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 \par \tab We should however draw attention to the }{\lang2057\langfe1033\langnp2057\insrsid4740487\charrsid5066989 artificial }{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 basis on which the appeals by the taxpayer companies have been conducted.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 Their case focussed on the position of Mr Jamnadas}{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 and his need to travel to Suva for business purposes.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 C}{ \lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 o}{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 mpanies}{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 on the other hand }{ \lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 do not have personal or living expenses, and do not live in homes}{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3103800\charrsid5066989 The taxpayer companies have not conducted these proceedings on the basis }{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 that they }{ \lang2057\langfe1033\langnp2057\insrsid3103800\charrsid5066989 paid the travelling expenses of Mr Jamnadas because they wanted him to come to Suva.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3103800\charrsid5066989 There may be good reasons why the proceedings have been conducted as they}{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 have been, }{ \lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 and it may be that under the Act}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 the}{ \lang2057\langfe1033\langnp2057\insrsid10639655\charrsid5066989 companies}{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 could not have deducted the cost of bring}{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 ing}{ \lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 Mr Jamnadas to Suva}{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 or if they could }{ \lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 do so the }{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 cost may have been taxable in the hands of Mr Jamnadas.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 See s.19(a) and c}{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 ompa}{\lang2057\langfe1033\langnp2057\insrsid12662916\charrsid5066989 re}{ \lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 Taylor v. Prov}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 a}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 n}{\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 [1975] AC 194.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 These matters were not argued before us, and we express no opinion about them.}{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid7890066\charrsid5066989 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 The Second Issue: Penalties}{\b\ul\lang2057\langfe1033\langnp2057\insrsid16602078\charrsid5066989 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 \tab As the result of the proceedings in the Court of Re}{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 view and High Court}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 this issue}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 is now limited to the penalty }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 of $11,621.00 }{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 for}{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 which the Commissioner has assessed Michelle for the late lodgement of its returns, }{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 under }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 his amend}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 ed}{ \lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 assessment}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 , }{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 made }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 following the decision of the Court of Review.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 Byrne J. reduce}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 d}{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 th}{ \lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 e penalty }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 to $1,160.00 but the }{\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 Court of Appeal re-instated the amended assessment}{\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 In this Court Michelle has sought}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 the }{ \lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 re-instatement of the}{\lang2057\langfe1033\langnp2057\insrsid12937439\charrsid5066989 penalty fixed by}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 Byrne J. }{\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 \par \tab Section 94 provides}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 that}{\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 a person who fails to make a return within the time limited shall }{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 be }{\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 subject to a penalty of }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 50 per cent of }{ \lang2057\langfe1033\langnp2057\insrsid873123\charrsid5066989 the amount of tax payable, and the section further provides that }{\b\i\lang2057\langfe1033\langnp2057\insrsid873123\charrsid5066989 \'93 all such penalties shall be assessed and collected from the person liable to make a return }{\b\i\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 in }{\b\i\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 the}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 same manner }{\b\i\lang2057\langfe1033\langnp2057\insrsid12939329\charrsid5066989 in }{ \b\i\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 which taxes are assessed and collected. \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid13508310\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 \par \tab Michelle lodged its returns for the years 19}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 8}{\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 1 to 1994 inclusive on 3 August 1995, and was thus automati}{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 cally liable under s.94 to a 50 per cent }{\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 penalty.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 However, s.100}{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 (2) provides that }{\b\i\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 \'93 the Commissioner may, in his discretion, mitigate or remit any penalty which may be assessed, recovered or imposed under this Act.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 \'94}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 The taxpayer}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 appealed to the Court of Review from the Commissioner\rquote s assessments of primary tax and penalties.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 It seems that the Commissioner initial}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 ly}{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 assessed }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 Michelle }{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 for the full statutory penalties, }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 but }{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 when the case was before the Court of Review he stated through his counsel}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 that}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 he was prepared to remit 80}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 per cent }{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 of the penalties and only sought to support }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 penalties }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 on Michelle }{ \lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 totalling $26,313.00. \par \par \tab The Court of Review}{\lang2057\langfe1033\langnp2057\insrsid4206669\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 held that it had no jurisdiction to review the exercise of the Commissioner\rquote s discretion to remit the penalties }{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 but}{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 said that the Commissioner w}{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 as}{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 bound to exercise }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 his discretion }{ \lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 in respect }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 of penalties to a greater extent}{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 than the 80}{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 percent r}{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 emission}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 he had indicated through his counsel.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 \par \par \tab }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 In their }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 appeal to the High Court the taxpayer}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 challenged the decision of the Court of Review that it had no jurisdiction to review the penalties assessed by the Commissioner and sought further reductions.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 Following the decision of the Court of Review the Commissioner amended }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 all assessments and reduced the }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 penalties on Michelle to $11,621.00.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5576285\charrsid5066989 The penalty imposed on }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 Mr Jamnadas is no longer in issue.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid9533583\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 \par \tab Byrne J. held, with respect correctly, th}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 at}{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 s.94 }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 which }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 provides for}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 penalties to be assessed and collected in the same manner as }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 primary t}{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 ax}{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 , br}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 ought }{ \lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 assessments of penalty }{\lang2057\langfe1033\langnp2057\insrsid10618033\charrsid5066989 within the jurisdiction of the Court of Review.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid10618033\charrsid5066989 In our judgment }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 this conclusion flowed inexora}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 b}{ \lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 ly from the provisions of s.}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 94, the provisions of }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 s.62 dealing with}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 objections to assessments and appeals to the Court of Review from the decisions of the Commissioner on such objections , and the powers of that Court under ss.62(6), 63(1), 66(1) and (2).}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 Byrne J. exercise}{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 d}{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 the discretion under s.100(2)}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 and reduced the penalty}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 on Michelle to $1,162.00.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid5928580\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid3959788\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 \tab The Court of Appeal }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 upheld the decision of Byrne J.}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 that there was no sound basis for limiting}{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 , as the Court of Review had done, }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 the right to object to and appeal from an assessment of penalty, but }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 it }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 held that the jurisdiction of the Court of Review and the High Court }{\lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 was }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 confined to reviewing }{ \lang2057\langfe1033\langnp2057\insrsid11017149\charrsid5066989 the Commissioner\rquote s decision under s.100(2) }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 for}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 error. }{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 We are unable to }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 accep}{ \lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 t this limitation on the jurisdiction of those Courts. \par \par \tab Section 62(6) gives the Court of Review }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 power to hear and determine}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 appeals from the Commissioner.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 Section 63(1) provides th}{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 at}{ \lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 Court }{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 of Review }{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 has }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 powers and authority similar to those vested in the High Court as if the appeal were }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 a}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 n action between the taxpayer and the Commissioner.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 Finally s.66(1) provides that the C}{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 ourt of Review \'93shall determine}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 the matter and confirm or amend the assessment accordingly\'94 and s.66(2) provide}{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 s that it has}{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 power to increase an assessment.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 \par \par \tab Although the Act does not explicitly identify the nature of the appeal to the Court of Review, the effect of the provisions we have referred to is reasonably clear.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 The problem of identifying the nature of an appeal from an administrative authority to a Court}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 ,}{ \lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 where this has not}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 been clearly spelled out in the statute, is a familiar one.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11686157\charrsid5066989 The relevant principles }{ \lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 were conveniently summarised by Sir Anthony Mason in }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 Builders Licensing Board v.}{ \lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 Sper}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 way Construction}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 s}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 (Syd) Pty Ltd.}{\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 (1976) 135 CLR, }{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 616, }{\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 621: \par }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 \'93 Where a right of appeal is given to a court from a decision of an administrative authority, }{\b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 a}{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 provision that the appeal is to be by way of rehearing generally}{\b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 means}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 that the court will undertake }{\b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 a hearing de}{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 novo, although there is no absolute rule to this effect\'85}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 There are, of course, sound reasons for thinking that in many cases an appeal to}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 a court from an administrative authority will necessar}{\b\i\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 il}{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 y entail a hearing d}{ \b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 e}{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 novo\'85 The nature of the proceeding before the administrative authority may be of such a character as to lead to the conclusion that it was not intended that the court was to be confined to the materials before the authority.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 There may be no provision for a hearing at first instance or for a record to be made }{ \b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 of}{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 what takes place there.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 The authority may not be bound to apply the rules of evidence\'85 A}{\b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 gain}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 the authority may not be required to furnish reasons for its}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 decision.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 In all these cases there may be ground for saying that an appeal calls for an exercise of original }{ \b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 jurisdiction or for a hearing de}{\b\i\lang2057\langfe1033\langnp2057\insrsid1727188\charrsid5066989 novo.\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 \par Each of the matters identified by Sir Anthony Mason in this passage was applicable to the proceedings before the Commissioner }{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 and to the appeal to the Court of Review.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 The Act does not state, in terms, that the appeal shall be a complete rehearing on the evidence in the Court of Review but that is the necessary result of its provisions. }{\lang2057\langfe1033\langnp2057\insrsid14441385\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 \par \tab Moreover the reference in s.63(1) to the }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 Court of Review having the }{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 powers and authority of the High Court}{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 as if the appeal were }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 a}{ \lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 n action}{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 ,}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 strongly suggests that }{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 this class of appeal}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 involve}{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 s}{ \lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 the exercise of original jurisdiction }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 since an}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 actio}{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 n in the High Court involves an}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 exercise of such jurisdiction.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 In }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 the }{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 normal case the Court of Review is likely to have before it, as it did in this case, a substantial body of }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 oral}{\lang2057\langfe1033\langnp2057\insrsid13393627\charrsid5066989 and documentary evidence which was not before the Commi}{\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 ssioner.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 The duty of the court, in accordance with s.66(1) \'93}{\b\i\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 after hearing any evidence adduced and upon such other enquiry as it considers }{ \b\i\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 advisable}{\b\i\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 \'94}{\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 is }{ \b\i\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 \'93to determine the matter and confirm or amend the assessment accordingly.\'94 \par \par }{\lang2057\langfe1033\langnp2057\insrsid14900216\charrsid5066989 \tab In our judgment this makes it clear that the duty of the Court of Review is to determine the taxpayer\rquote s }{\lang2057\langfe1033\langnp2057\insrsid2755420\charrsid5066989 taxable income on the evidence }{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 be}{\lang2057\langfe1033\langnp2057\insrsid2755420\charrsid5066989 for}{\lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 e}{ \lang2057\langfe1033\langnp2057\insrsid2755420\charrsid5066989 it.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid2755420\charrsid5066989 The court was therefore entitled and }{ \lang2057\langfe1033\langnp2057\insrsid1116946\charrsid5066989 bound}{\lang2057\langfe1033\langnp2057\insrsid2755420\charrsid5066989 to re-exercise the discretion conferred by s.100(2) and to fix the appropriate penalty in the light of the evidence}{ \lang2057\langfe1033\langnp2057\insrsid3811002\charrsid5066989 and argument before it. \par \par \tab The Court of Appeal therefore erred in limiting the appeal to the Court of Review in penalty cases }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 to the correct ion of error by the Commissioner and in reversing this part of the decision of Byrne J.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 Byrne J. having held correctly that the Court of Review made a jurisdiction}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 al}{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 error and }{ \lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 wrongly }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 refuse}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 d}{ \lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 to re-exercise the discretion under s.100(2) was entitled and bound to re-exercise that discretion himself on the material before the High Court.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 This inc}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 luded }{ \lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 additional }{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 materials}{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 which had not be}{ \lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 en}{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 before the Court of Review.}{\lang2057\langfe1033\langnp2057\insrsid3811002\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 \par \tab The appeal from the Court of Review to the High Court is governed by s.69 which provides that the High Court shall hear and consider the appeal }{\i\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 \'93}{ \b\i\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 upon the papers and evidence referred and }{\b\i\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 upon}{\b\i\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 any further evidence which the appellant or the}{\b\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 Commissioner produces under the direction of the said court.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid13708604\charrsid5066989 \'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 \par \tab Although the section does not}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid14093582\charrsid5066989 spell out the principles which the High Court should follow in giving directions }{ \lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 for the reception of further evidence, these are governed by the structure of the Act.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 The appeal to the Court of Review is to be conducted as if it were an action in the High Court and both parties there}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 fore will be entitled to adduce}{\lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 relevant and admissible evidence as of right.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 On appeal to the High Court further evidence is only admissible under the direction of that court.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 This necessarily involves a power to refuse }{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 to admit }{\lang2057\langfe1033\langnp2057\insrsid3960666\charrsid5066989 fur ther evidence}{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 . \par \par \tab The Act thus contemplate}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 s that both parties will adduce}{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 all their evidence during the hearing in the Court of Review and}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 that}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 some good reason }{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 will}{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 have to be shown before further evidence will be admitted in the High Court.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 It ca}{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 n be }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 ex}{\lang2057\langfe1033\langnp2057\insrsid6636200\charrsid5066989 pected}{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 that the High Court will readily admit fresh evidence discovered since the hearing in the Court of Review which m}{ \lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 eets}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 the}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 common}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 law requirements for the reception of such evidence.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 See }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 Ladd}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 v. Marshall}{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 [1954] 1 WLR 1489 C}{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 A}{ \lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid15278800\charrsid5066989 I}{\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 t }{ \lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 can also be expected that evidence of}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 events which have occurred since the hearing in the Court of Review will also be admitted in a proper case.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 Compare }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 Mulh}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 olland v.}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 Mi}{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 t}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 chell}{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 [1971]}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 AC 666.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 However the High Court should bear in mind the statement of Lord Pearson}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 in the latter case at 681:- \par \par }\pard \ql \li720\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 \'93\'85an appeal normally involves only a review of a judge\rquote s decision on the evidence given on the trial.}{\b\i\lang2057\langfe1033\langnp2057\insrsid5066989 }{\b\i\lang2057\langfe1033\langnp2057\insrsid11361424\charrsid5066989 A partial retrial with further evidence added is not a normal function of the Court of Appeal.\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 \par }\pard \ql \li0\ri720\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid5066989 {\b\i\lang2057\langfe1033\langnp2057\insrsid16716671\charrsid5066989 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 \tab Michelle therefore succeeds on the issue }{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 of }{\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 penalties and }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 to t}{ \lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 hat extent }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 its appeal must be allowed}{\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 and the judgment of Byrne J. restored.}{\lang2057\langfe1033\langnp2057\insrsid14640450\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 \par \tab }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 It was not suggested by }{\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 counsel for the Commissio ner that the reexercise of the discretion by Byrne J. miscarried because he failed to take into account, as a relevant consideration, the substantial deferment}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 obtained by Michelle for the payment of its taxes}{\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 It was not suggested and it does not appear to us that}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 the Act contain}{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 any other provision which would entitle the Commissioner to recover interest on taxes which could not be assessed because the taxpayer failed to file his returns}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 on time}{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 . \par \par \tab }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 The case }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 has been conducted }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 on the basis that }{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 the purpose of the penalty impose}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 d}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 by s.94 }{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 f}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 or failure to file returns }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 i}{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 s to punish the d}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 ilatory}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 taxpayer and the power to mitigate or}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 remit that penalty }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 must be exercised }{\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 with}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 this}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 purpose}{ \lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 in mind}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 .}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 I} {\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 t is common ground that counsel for the Commissioner did not submit to Byrne J. that the power in s.100(2) could be exercised to }{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 recover }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 interest at a non}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 -}{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 penal rate }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 for }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 the period of delay }{ \lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 caused}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 by the default.}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 \par \par \tab }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 The proper scope of this discretion}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 was not the subject of argument in this }{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 C}{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 ourt, and we express no opinion on th}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 at}{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 matter. \par \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 Costs}{\b\ul\lang2057\langfe1033\langnp2057\insrsid12809786\charrsid5066989 \par }{\b\lang2057\langfe1033\langnp2057\insrsid8717317\charrsid5066989 \par }{\lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 \tab The Commissioner has succeeded on the issue of the travelling expenses, and in this respect the appeal by the taxpayers fails.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid13718920\charrsid5066989 However Michelle has succeeded on the issue of penalties}{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 , and to that extent its appeal has succeeded.}{ \lang2057\langfe1033\langnp2057\insrsid5066989 }{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 The amounts in dispute in respect of travelling expenses were substanti}{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 all}{ \lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 y greater }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 than}{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 the amount}{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 in dispute }{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 on the penalties, }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 and}{ \lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 the argument on the }{\lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 former }{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 issue took up the greater pa}{ \lang2057\langfe1033\langnp2057\insrsid6842503\charrsid5066989 rt of the hearing time in this C}{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 ourt.}{\lang2057\langfe1033\langnp2057\insrsid5066989 }{ \lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 In th}{\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 ose}{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 circumstances the appellants should be ordered to pay one half of the Commissioner\rquote s cost}{\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 s}{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 of}{ \lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 and incident to }{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 the appeal.}{\lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 \par \par }{\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 The following orders should be made: \par }{\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid3371965\charrsid5066989 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 Appeals by Chiman}{\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 l}{ \lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 al Jamnadas and Primetime Properties Limited dismissed. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6124197 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid3371965\charrsid5066989 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 Appeal by Michelle Apartments Limited allowed in part. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid3371965\charrsid5066989 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 Set aside so much of the orders of the Court of Appeal of 1/3/2002 as set aside the order of Byrne J. of 24/8/1999 imposing a penalty of $1,160.00 on Michelle Apartments Limited under s.94 and s.100(2) of the Income Tax Act. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6124197 {\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid8093026\charrsid5066989 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Order }{\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 of}{ \lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Byrne J. imposing a penalty of $1,160.00 restored with effect from 24/8/99. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6124197 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid3371965\charrsid5066989 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid3371965\charrsid5066989 Orders of the Court of Appeal of 1/3/2002}{ \lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 otherwise confirmed. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 \par {\listtext\pard\plain\lang2057\langfe1033\langnp2057\langfenp1033\insrsid8093026\charrsid5066989 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard \ql \fi-360\li1080\ri0\nowidctlpar \jclisttab\tx1080\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1080\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 T}{\lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 he appellants jointly and se}{ \lang2057\langfe1033\langnp2057\insrsid4027777\charrsid5066989 verally are to}{\lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 pay }{\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 one }{ \lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 half of the Commissioner\rquote s costs }{\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 of and incident to the appeal to }{ \lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 in the Supreme Court. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\lang2057\langfe1033\langnp2057\insrsid13919176\charrsid5066989 \par }\pard \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6124197 {\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Hon Justice Daniel Fatiaki \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 President of Supreme Court \par \par }{\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Hon Justice Robert French \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Judge of Supreme Court \par \par }{\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Hon Justice Kenneth Handley \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Judge of Supreme Court \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5066989 {\ul\lang2057\langfe1033\langnp2057\insrsid14700642\charrsid6124197 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Solicitors: \par }{\ul\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid6124197 \par }{\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Messrs}{\b\lang2057\langfe1033\langnp2057\insrsid3412733\charrsid5066989 .}{\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 Wm Scott and Company, Suva for the Appellants \par Legal Offi}{\b\lang2057\langfe1033\langnp2057\insrsid1727188\charrsid5066989 cer, Inland}{\b\lang2057\langfe1033\langnp2057\insrsid13894069\charrsid5066989 Revenue Department, Suva }{\b\lang2057\langfe1033\langnp2057\insrsid8093026\charrsid5066989 for the Respondent \par }}