Case S41

Judges:
MB Hogan Ch
P Gerber M
GW Beck M

Court:
No. 3 Board of Review

Judgment date: 7 June 1985.

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M.B. Hogan (Chairman) and Dr P. Gerber (Member)

We agree in the decision of our colleague Dr Beck. On the evidence, we accept that the taxpayers genuinely held the view that they were involved in a business venture with real commercial prospects. They were prepared to, and did, outlay real funds in repayment of borrowed funds and on the lease agreements entered into in respect of the caravans. We accept also the evidence given by the taxpayers in relation to the option clause to the effect that they believed, when they signed the agreement, that the option could be operated only at their choice. That being so, the arrangements lose those characteristics of a tax-avoidance scheme so strongly urged upon us by counsel on behalf of the Commissioner.

2. Accordingly we would reduce the assessments in the manner proposed by Dr Beck.