Slater - Appn by

The applicant, Slater, sought leave to appeal from a decision of the Full Court of the Federal Court of Australia. The dispute concerned the applicant's entitlement to a tax deduction for certain expenditure incurred in relation to a property development project. The Commissioner of Taxation had disallowed the deduction, and this decision was upheld by the Full Court.

The primary legal issue before Hayne J was whether the Full Court had erred in its interpretation and application of the relevant provisions of the *Income Tax Assessment Act 1936* (Cth) concerning the deductibility of expenditure. Specifically, the court had to consider whether the expenditure was of a capital or revenue nature, and whether it was incurred in gaining or producing assessable income.

Hayne J, in chambers, reviewed the decision of the Full Court and the arguments presented by the applicant. His Honour considered the established principles for distinguishing between capital and revenue expenditure, including the "once and for all" test and the "profit-making structure" test. His Honour found that the Full Court had correctly applied these principles to the facts of the case and had not made any error of law.

Leave to appeal was therefore refused.