Brookton Co-op Society Ltd v. The Commissioner of Taxation [1979] FCA 34

IS) 79

aa\nq BAC.

CATCHWORDS

Income tax - Division 7 tax - Co-operative companies - Holding company engaged in wine merchandising - Subsidiaries engaged in other activities - Definition of "co-operative company" - Primary object of business -

Purpose of establishment - Dominant purpose - Income

Tax Assessment Act 1936 (Cth.) Div.7, Div.9, ss.1C3A(2) (b),

——

103A(2) (d) (v), 117, 120(1) (ec).

Income tax ~- Division 7 tax - Dividends - Resolution to pay interim dividend to holding company - Book entries - Resolution to rescind interim dividend - Reversal of book entries - Whether dividend "paid" or "credited" -

Whether assessable - Income Tex Assessrent Act 1936(Cth.)

Div.7, s.6(1) (defanition of "paid"), s.44(1) (a).

BROOKTON CO-OPERATIVE SOCIETY LIMITED v, THE COMMISSIONER

OF TAXATION No. G48, G49, G50, G51 of 1977.

Coram : Brennan, Deane and Fisher JJ.

Sydney

1 May 1979

IN THE FEDERAL COURT OF AUSTRALIA }

) NEW SOUTH WALES DISTRICT REGISTRY )

) GENERAL DIVISION )

No. G51 of 1977

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES

BETWEEN 3 BROOKTON CO-OPERATIVE SOCIETY LINITED - Appellant AND 3 THE COMMISSIONER OF TAMATIC Respondent ORDER

JUDGES MAKING ORDER Brennan, Deane and Fisher JJ,

DATE OF ORDER 1 May 1979.

WHERE MADE

Sydney.

THE COURT ORDERS THAT

1. The appeal be dismissed.

2. The appellant pay the respondent his costs of the appeal

to be taxed.

costs of the appeal to the Supreme Court less the

taxed costs (if any) of the issue as to the reduction

by $47,915 of its taxable income for the purposes of Division 7.

2. The appellant pay to the respondent his costs of the appeal to this Court to be taxed less the taxed

costs (if any) of the issue as to the reduction by

$47,915 of the appellant's taxable income for the purposes

of Division 7 for the 1973 year.

IN THE FEDERAL COURT OF AUSTRALIA

of 1977

) ) NEW SOUTH WALES DISTRICT REGISTRY } No. G48, 49, 50, Sl ) GENERAL DIVISION )