DRAFT ONLY Myer Income Strands at 30-Year Anniversary: Nature, Scope and Interaction with other Charging Rules

Dale Boccabella, Elen Seymour
2017 unpublished
The thirty-year anniversary of the High Court decision in FCT v The Myer Emporium Ltd is approaching. Amongst other reasons, the case is significant because the decision is a joint judgment of a five-member High Court bench, the decision overturned the decision of all four judges that heard the matter in the lower courts and the fact the High Court decision canvasses some highly problematic income tax principles including the basis for measuring an income profit. It can be argued that the
more » ... gued that the decision expanded the income concept and/or changed the courts' approach to characterising the income-capital boundary in regard to isolated transactions. Many students of tax, tax academics (including the authors), tax practitioners and tax judges (at least in early days) find the income doctrines (two strands) in Myer difficult and problematic. This article is aimed at bringing some clarity to the income doctrines and related issues in Myer. This includes an examination of the nature and scope of the two income doctrines in Myer (now known as the two income strands of Myer), and the relationship between those two strands. The article also discusses the relationship between the two strands (mainly the first strand) in Myer and s 15-15 (profit from profit-making undertaking or plan).