Judicial and legislative considerations in the taxation of compensation receipts : an international comparison

In 1995, the Federal Commissioner of Taxation released Taxation Ruling TR 95/35 in an attempt to comprehensively address the appropriate capital gains tax treatment of a receipt of compensation, awarded either by the courts or via a settlement. The ruling was in response to the numerous, somewhat contradictory, court decisions of the early 1990s. Despite the release of TR 95/35, there still appears to be a lack of consensus as to the appropriate treatment of such awards. It has been suggested that the only way a taxpayer can, with any certainty, determine their liability is to obtain a private binding ruling, a far from satisfactory situation. In an attempt to clarify what the capital gains tax consequences of a compensation receipt should be, this article examines the Australian position and explores the comparative jurisprudence of the United Kingdom and Canada to ascertain whether the Australian attitude is consistent with these international jurisdictions. This article concludes that while the jurisdictions, through differing approaches, achieve a similar result, there is still a need to address the uncertainties that remain.

Bills and receipts of Dr. Andrew Judah for attendance on poor of K. K. S. I.

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Receipts and Bills of K. K. S. I.--General and unspecified

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Receipts and accounts of Congregation

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Letters and receipts from Sir Moses Montefiore

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Receipts from Park Lawn Cemetery Co. Ltd.

Receipts from the Park Lawn Cemetery Co. Ltd., Bloor St. West, Toronto. Receipt no. 851 for payment in full for a Lot no.91 in section H received from Percy C. Bands [Band]. Receipt no. 852 for payment for corner stones for Lot no.91 in section H received from Percy C. Bands [Band]. The unnumbered receipt is for opening an adult grave for Sarah Lawrence. Payment was received from Percy C. Bands [Band], Feb. 23, 1926.

Receipts to S.D. Woodruff from T. Healy

Receipt to S.D. Woodruff from T. Healy of St. Catharines for boots and shoes, July 1, 1876.

List which includes costs, plans and receipts for amounts received between S.D. Woodruff and Boyd and Schurr

List (8 pages, handwritten) which includes costs, plans and receipts for amounts received between S.D. Woodruff and Boyd and Schurr, Dec. 3, 1875.

List entitled “Memo of receipts – farm”

List entitled “Memo of receipts – farm”, 1872.

List entitled “Memo of receipts – farm

List entitled “Memo of receipts – farm, 1873.

List entitled “Receipts of farm”

List entitled “Receipts of farm”, 1874.

List entitled “Memo of receipts of farm”

List entitled “Memo of receipts of farm”, 1875.

List entitled “Memo of receipts of farm”

List entitled “Memo of receipts of farm”, 1876.