Essay about Taxation Law Case Analysis

1414 Words May 3rd, 2012 6 Pages
CLAW3201 Case Analysis

In Crown Insurance Services Ltd v Commissioner of Taxation (Crown), the issues raised are pertinent to the residence and source of the company under s6(1) of the Income Tax Assessment Act 1936. As cases are determined on the basis of all relevant facts and circumstances of each case, this analysis will focus on how the court’s decision process determined whether Crown had carried on business in the years 2004-2007 inclusive and the existence of central management and control (CM&C) in Australia. The purpose of this is to assess the valuation of Crown’s taxable income, which ultimately resulted in the objective decision to be set aside in favour of the applicant. Evaluation will be made in regards
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Following from this, it is logical to assume that Mr Pattenden had dealt with the reception and decision towards the valuation of claims while residing in Australia, as it would be extremely unrealistic for him to travel to Vanuatu each and every single time he received a claim that needed processing. When now compared to Malayan Shipping, Crown appears to possess much of the same indicative facts that had caught Malayan Shipping as a resident of Australia. Mr Sleigh had similarly made decisions relating to his business while in Australia and had drafted contracts that were then intended to be signed outside of Australia. This was seen as the essential test confirming both ‘carrying on business’ and ‘CM&C’ in Australia. It is therefore possible to suggest that should Crown be further tested in a higher court in the future, highlighting the case of Malayan Shipping and focusing more on CM&C could potentially alter the case outcome.

Current state of law (200-250 words)

The law of Residence and Source within Australia has been both and unclear and problematic, thus creating uncertainties that have recently been “magnified with factual application and technology changes that allow remote management” (Dirkis 2005). Even cases as similar as

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