News Australia Holdings Pty Ltd v FCT – interest income not yet paid was still held to have been ‘derived’ during the year as this was the correct ‘reflex’ of income for that year
The Federal Court has held that an accruals basis of accounting for the interest accruing to a company (SRC Holdings Limited, which was owned by News Limited) provided the correct reflex of the company’s true income and that the taxpayer applicant in the case (News Australia Holdings Pty Ltd) was to be assessed on SRC’s…