Collector of Imposts (Vic) v Cuming Campbell Investments Pty Ltd

The Collector of Imposts (Victoria) appealed to the High Court of Australia from a decision of the Supreme Court of Victoria concerning the stamp duty payable on an instrument of transfer of real property. The dispute arose between the Collector of Imposts and Cuming Campbell Investments Pty Ltd regarding the classification of the transfer for stamp duty purposes.

The primary legal issue before the High Court was whether the instrument of transfer was chargeable with duty as a "transfer on sale of real property" under heading VI of the Third Schedule to the Stamps Act 1928 (Vict.), or as a "Settlement or Gift, Deed of" under heading IX of the same schedule. This classification depended on the nature of the consideration for the transfer and whether it constituted a gift or benefaction.

The majority of the High Court, comprising Starke, Dixon, Evatt, and McTiernan JJ., held that for an instrument to be chargeable under heading IX, it was not sufficient that the consideration was other than a bona fide adequate pecuniary consideration; it was essential that the instrument conferred a gift or benefaction. In this case, the transfer of land for £50,000, when its true value was significantly higher, did not involve a gift or benefaction to the company. Therefore, the instrument was correctly classified as a transfer on sale. Latham C.J., dissenting in part, considered the transaction to involve a disposition of property for less than its full value with the intention of conferring a benefit, suggesting it should be chargeable under both headings.

The High Court affirmed the decision of the Supreme Court of Victoria, ordering that the instrument of transfer was chargeable with duty as a transfer on sale of real property under heading VI, and not as a deed of gift under heading IX.