Bone v Commissioner of Stamp Duties (NSW)

The case of *Bone v Commissioner of Stamp Duties (NSW)* concerned a dispute between the taxpayer, Mr. Bone, and the Commissioner of Stamp Duties (NSW) regarding the assessment of stamp duty. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether certain shares, which were the subject of a transfer, constituted "marketable securities" for the purposes of the Stamp Duties Act 1920 (NSW). This determination was crucial for calculating the applicable stamp duty.

The Court considered the definition of "marketable securities" within the Act and the nature of the shares in question. It was held that the shares were not readily transferable on a stock exchange and lacked the characteristics of being easily bought and sold in the ordinary course of business. Consequently, they did not fall within the statutory definition of marketable securities. The Court applied the principle that for shares to be considered marketable securities, there must be a genuine and accessible market for their sale and purchase.

The High Court found in favour of the taxpayer, Mr. Bone, holding that the shares were not marketable securities and therefore not subject to the higher rate of stamp duty applicable to such instruments.