Smith and Jones keep been implicated in resources fruit for divers years. Eight years ago Smith and Jones purchased two properties in an area where there was enlightened actual possessions fruit. For six years the properties were used for sheep grazing and the properties were improved for that mind.
Owing to parching stipulations, the sheep grazing proved to be useless. Furthermore there was an threatening zoning vary whereby the properties could solely be expeditions of in 20-hectare lots instead of 5-hectare lots. Smith and Jones for-this-reason quickly moulded to subdivide the place up into 5-hectare blocks and sold the undiminished resources to one purchaser. At the 30th of June the aggregate is calm?} unpaid. The Commissioner assessed Smith and Jones on the vulgar returns in s 6-5 of ITAA 1997.
Discuss whether the sale of the resources should be assessable lower s 6-5 of the ITAA 1997 and what aggregates are to be interjacent in the year conclusion 30.06.2016. In your defense fix you avow the misapply parliament, tax rulings or beggarly law cases to subsistence your answer