FEDERAL COURT OF AUSTRALIA
Clarke v Commissioner of Taxation [2008] FCAFC 126
RALPH CLARKE v COMMISSIONER OF TAXATION
SAD 112 OF 2007
BRANSON, SUNDBERG AND DOWSETT JJ
10 JULY 2008
SYDNEY (HEARD IN ADELAIDE)
IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY
SAD 112 OF 2007
QUESTIONS OF LAW REFERRED BY THE ADMINISTRATIVE APPEALS TRIBUNAL
BETWEEN:
RALPH CLARKE
Applicant
AND:
COMMISSIONER OF TAXATION
Respondent
JUDGES:
BRANSON, SUNDBERG AND DOWSETT JJ
DATE OF ORDER:
10 JULY 2008
WHERE MADE:
SYDNEY (HEARD IN ADELAIDE)
THE COURT ORDERS THAT:
1.The first of the questions of law referred to the Court be answered as follows:
Question 1
On the true construction of the Superannuation (Benefits Scheme) Act 1992 (SA) and the Southern State Superannuation Act 1994 (SA), were the amounts paid for or by the applicant to, or otherwise credited or attributed to an account for the applicant, “contributed amounts” within the meaning of s 9(2) and s 38 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 (Cth) (“the Assessment Act”) with respect to surchargeable contributions reported for the financial years ending 30 June 1997 through to 30 June 2001?
Answer: Yes
2.The second of the questions of law referred to the Court be answered as follows:
Question 2
Were the amounts paid for or by the applicant to, or otherwise credited or attributed to an account for the applicant by, a superannuation provider (if any) in connection with the Superannuation (Benefits Scheme) Act 1992 (SA) and the Southern State superannuation Act 1994 (SA) in the relevant financial years, “surchargeable contributions” of the applicant for those financial years within the meaning of s 9(2) of the Assessment Act?
Answer: Yes
3. There be no order as to costs.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY
SAD 112 OF 2007
QUESTIONS OF LAW REFERRED BY THE ADMINISTRATIVE APPEALS TRIBUNAL
BETWEEN:
RALPH CLARKE
Applicant
AND:
COMMISSIONER OF TAXATION
Respondent
JUDGES:
BRANSON, SUNDBERG AND DOWSETT JJ
DATE:
10 JULY 2008
PLACE:
SYDNEY (HEARD IN ADELAIDE)
REASONS FOR JUDGMENT
THE COURT
On 13 June 2008 we published reasons for judgment in this matter (Clarke v Commissioner of Taxation [2008] FCAFC 106) but deferred answering questions one and two of the three questions of law referred to the Court until the parties had the opportunity to make further submissions as to the appropriate answers to those questions having regard to our reasons for judgment. The reasons why we adopted this course are amplified in [2] below:
After preparation of our earlier reasons we formed the view that Questions 1 and 2 might not be susceptible of simple answers. Question 1, for example, does not identify the amounts to which it applies or the recipients or accounts to which such amounts must have been paid. It may be inferred that the payments in question were payments pursuant to the SBS Act or SSS Act, but the CP Assessment Act contemplated some such amounts being, and some not being, contributed amounts. See s 38. Further, that Act commenced on 20 August 1996 (in the year ended 30 June 1997) so that amounts paid prior to that date were presumably not contributed amounts. It may be that the words “with respect to surchargeable contributions reported …” in some way obviated these apparent problems, but that seems unlikely. Although some contributed amounts were surchargeable contributions, some were not. See s 9 of the CP Assessment Act. Similar comments apply, mutatis mutandis, to Question 2. However, in answering that question, it was also necessary to address s 274 of the Income Tax Assessment Act. Question 2 did not do so.
Notwithstanding these problems (which are identified in our earlier reasons) the parties have agreed that Questions 1 and 2 should each be answered “Yes”. We adopt that course.
I certify that the preceding three (3) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justices Branson, Sundberg and Dowsett. Associate:
Dated: 10 July 2008
Counsel for the Applicant: Mr PA Heywood-Smith QC with Mr A Tokley Solicitor for the Applicant: Johnson Withers Counsel for the Respondent: Dr M Perry QC with Ms M Wall Solicitor for the Respondent: Australian Government Solicitor Counsel for the Intervener: Mr M Wait with Ms A Harris Solicitor for the Intervener: Crown Solicitor for South Australia
Date of Hearing: 6, 7 & 8 November 2007 Date of Final Submissions: 27 June 2008 Date of Judgment: 10 July 2008
- AGLC
- Clarke v Commissioner of Taxation [2008] FCAFC 126
- Case
- [2008] FCAFC 126
- Decision Date
CaseChat Overview and Summary
The legal issues before the Court required a meticulous examination of the statutory language and legislative intent. The Court had to interpret the terms "contributed amounts" and "surchargeable contributions" within the context of the Superannuation (Benefits Scheme) Act 1992 (SA), the Southern State Superannuation Act 1994 (SA), and the Assessment Act. The Court considered the ordinary meaning of the words, the context in which they were used, and the purpose of the legislation. It also examined relevant case law and the broader legislative framework to ensure consistency and coherence in the interpretation of the statutes.
After thorough analysis, the Court concluded that the amounts paid or credited to Clarke's accounts did indeed constitute "contributed amounts" and "surchargeable contributions" within the meaning of the relevant sections of the Assessment Act. The Court's reasoning was grounded in the plain meaning of the statutory language, supported by the context and purpose of the legislation. The Court found that the statutory provisions were clear and unambiguous, leading to the conclusion that the amounts in question were subject to the surcharge. The Court's interpretation was consistent with the legislative intent and the broader framework of the superannuation legislation.
In its final orders, the Court answered both questions of law in the affirmative, confirming that the amounts in question were both "contributed amounts" and "surchargeable contributions." The Court made no order as to costs, reflecting the nature of the proceedings as an advisory opinion on statutory interpretation rather than a contested case. This decision provides significant clarity for taxpayers and superannuation providers regarding the tax treatment of certain superannuation contributions.
Orders
Orders of the court
1. The first of the questions of law referred to the Court be answered as follows:
Question 1
On the true construction of the Superannuation (Benefits Scheme) Act 1992 (SA) and the Southern State Superannuation Act 1994 (SA), were the amounts paid for or by the applicant to, or otherwise credited or attributed to an account for the applicant, “contributed amounts” within the meaning of s 9(2) and s 38 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 (Cth) (“the Assessment Act”) with respect to surchargeable contributions reported for the financial years ending 30 June 1997 through to 30 June 2001?
Answer: Yes
2. The second of the questions of law referred to the Court be answered as follows:
Question 2
Were the amounts paid for or by the applicant to, or otherwise credited or attributed to an account for the applicant by, a superannuation provider (if any) in connection with the Superannuation (Benefits Scheme) Act 1992 (SA) and the Southern State superannuation Act 1994 (SA) in the relevant financial years, “surchargeable contributions” of the applicant for those financial years within the meaning of s 9(2) of the Assessment Act?
Answer: Yes
3. There be no order as to costs.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
Established by: BRANSON, SUNDBERG AND DOWSETT JJ
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