Small & Associates Pty Limited

Small & Associates Pty Limited (the applicant) sought judicial review of a decision made by the respondent, the Commissioner of Taxation, to disallow its objection against an assessment of income tax for the 2017 income year. The dispute concerned the deductibility of certain expenses incurred by the applicant.

The primary legal issue before the court was whether the expenses claimed by the applicant were incurred in gaining or producing assessable income, or were necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income, pursuant to section 8-1 of the *Income Tax Assessment Act 1997* (Cth). The court was required to consider the nature of the expenses and their connection to the applicant's business activities.

The court analysed the evidence presented by the applicant regarding the nature and purpose of the disputed expenses. It applied the established legal principles for determining deductibility under section 8-1, focusing on whether the expenses had a sufficient nexus to the applicant's business operations and the generation of assessable income. The court found that the applicant had failed to demonstrate that the expenses met the criteria for deductibility.

Consequently, the court dismissed the applicant's application for judicial review and affirmed the Commissioner's decision to disallow the objection.