The Commissioner of Taxation of the Commonwealth of Australia v Cooper Brookes (Wollongong) Pty Ltd [1979] FCA 80

CATCHWORDS

Income tax - Allowable deductions - Carry-forward losses + Holding in subsidiary company ~ Continuity of beneficial ownership of shares in holding company - Principles of interpretation ~ Existence of contract or arrangement with specified purpose - Whether subjective or objective purpose - Continuance of arrangement - Parties to arrangement -

Evidence - Income Tax Assessment Act 1936, ss.80,

SOAA, 80A, 80B, 80C, 80D, 80E.

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA v. COOPER BROOKES (WOLLONGONG) PTY.LTD.

No. G90 of 1977.

Coram : Brennan, Deane and Fisher JJ.

15 August 1979.

Sydney.

IN THE FEDERAL COURT OF AUSTRALIA )

) NEW SOUTH WALES DISTRICT REGISTRY ) No. G90 of 1977

v) GENERAL DIVISION )

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES ADMINISTRATIVE LAW DIVISION

BETWEEN : THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA = Appellant AND : COOPER BROOKES (WOLLONGONG) PTY.LTD. Respondent ORDER

Brennan, Deane and Fisher Ju.

JUDGES MAKING ORDER

DATE OF ORDER

15 August 1979.

Sydney.

WHERE MADE

THE COURT ORDERS THAT:

"2. Phe appeal be allowed.

2. The order of the Supreme Court of New South Wales be set aside and in lieu thereof 1t be ordered: that the appeal by Cooper Brookes (Wollongong) Pty.Ltd. to that Court against its assessment to income tax in respect of the year of income ended 30 June 1971 be dismissed, that the assessment be confirmed, and that Cooper Brookes (Wollongong) Pty.Ltd. Pay the costs of the appeal to the Supreme Court incurred by The Commissioner of Taxation of the Commonwealth of

Australia to be taxed.

--/2

3. The respondent pay to the appellant his costs

of this appeal to be taxed.

mene ee

IN THE FEDERAL COURT OF AUSTRALIA )

) NEW SOUTH WALES DISTRICT REGISTRY )

. ) No. G90 of 1977 GENERAL DIVISION )

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES ADMINISTRATIVE LAW DIVISION