WILLCOX & WILLCOX

The parties to this proceeding were the applicants, Willcox & Willcox, and the respondent, the Commissioner of Taxation. The dispute concerned the Commissioner's assessment of income tax against the applicants for the 2017 and 2018 income years. The applicants sought to have these assessments set aside. The matter came before L. Turner J of the Federal Court of Australia.

The primary legal issue before the Court was whether the Commissioner had correctly determined that the applicants were carrying on a business of providing financial advice and therefore liable for income tax on the profits derived from that activity. This involved a consideration of the criteria for determining whether an entity is carrying on a business, particularly in the context of financial services.

L. Turner J applied the established legal principles for determining whether a business is being carried on, which include factors such as the scale of operations, the repetition of activities, the profit motive, and the commercial character of the undertaking. The Court examined the evidence presented regarding the applicants' activities, including the nature of the services provided, the engagement with clients, and the financial arrangements. Based on this examination, the Court concluded that the applicants' activities constituted the carrying on of a business.

Consequently, the Court dismissed the applicants' application to set aside the Commissioner's assessments.