Hooker Rex Pty Ltd v Federal Commissioner of Taxation

[1970] HCA 23

HIGH COURT OF AUSTRALIA

McTiernan J.

HOOKER REX PTY. LTD. v. FEDERAL COMMISSIONER OF TAXATION

(1970) 123 CLR 71

30 July 1970

Income Tax (Cth)

Income Tax (Cth)—Assessable income—Arrangement etc. to avoid tax—Purpose and effect of arrangement—Ordinary business dealing—Profitable project in land development—Subsidiary company with loss used to undertake project—Land development company exercised options to purchase land as trustee for subsidiary—Income Tax and Social Services Contribution Assessment Act 1936- 1961 (Cth), s. 260.

Decision

A. F. Grant Pty. Ltd. v. MacDonald (1960) Qd R 465
Newton v. Commissioner of Taxation (1958) AC 450
Federal Commissioner of Taxation v. Newton (1957) 96 CLR 577
Jaques v. Federal Commissioner of Taxation (1924) 34 CLR 328
Simms v. Registrar of Probates (1900) AC 323 Deputy Federal Commissioner of Taxation v. Purcell (1921) 29 CLR 464 W. P. Keighery Pty. Ltd. v. Federal Commissioner of Taxation (1957) 100 CLR 66
Clarke v. Federal Commissioner of Taxation (1932) 48 CLR 56 War Assets Pty. Ltd. v. Federal Commissioner of Taxation (1954) 91 CLR 53 Cecil Bros. Pty. Ltd. v. Federal Commissioner of Taxation (1964) 111 CLR 430 Elmiger v. Inland Revenue Commissioner (N.Z.) (1966) 10 AITR 145