Howard v Commissioner of Taxation

HIGH COURT OF AUSTRALIAFRENCH CJ,HAYNE, CRENNAN, GAGELER AND KEANE JJSTEPHEN JAMES HOWARD  APPELLANTANDTHE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA  RESPONDENTHoward v Commissioner of Taxation[2014] HCA 2111 June 2014M140/2013ORDERAppeal dismissed with costs.On appeal from the Federal Court of AustraliaRepresentationA H Slater QC with D J McInerney for the appellant (instructed by Oakley Thompson & Co)J T Gleeson SC, Solicitor-General of the Commonwealth with P R Bender (instructed by Maddocks) Notice:  This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.CATCHWORDSHoward v Commissioner of TaxationTaxation – Income tax – Taxpayer a member of joint venture – Taxpayer proposed involvement of company of which he was director in business opportunity arising from joint venture – Breach of fiduciary duty by joint venturers – Joint venture failed and opportunity lost – Taxpayer awarded equitable compensation for loss of joint venture opportunity – Commissioner included compensation in taxpayer's assessable income – Whether taxpayer held compensation on constructive trust for company – Whether compensation assessable income. Assignment – Where litigation agreement between company and directors assigned to company any award to directors of damages arising out of relevant proceedings – Whether agreement assignment of proceeds of action or assignment of rights under judgment obtained in action – Whether agreement assignment of present property for value or assignment of future income. Words and phrases – "assignment of future income", "conflict of duties", "conflict of duty and interest", "fiduciary duty", "unauthorised gain or profit".FRENCH CJ...