Federal Court of Australia
CATCHWORDS
Income tax - Assessable income ~- Taxpayer company acguiring land not for the purpose of profit-making by sale - Change in shareholding and directors of company - Subdivision and sale of the land over several years - Business - Mere realization of a capital asset - Sale in the ordinary course of a business - Whether proceeds of sale constitute
assessable income - Income Tax Assessment Act 1936
(Cth) ss.25,26(a).
Whitfords Beach Pty.Ltd. v. The Commissioner of Taxation of the Commonwealth of Australia.
No. G1 of 1979.
Coram : Brennan, Deane and Fisher JJ.
20 December 1979.
Sydney.
IN THE FEDERAL COURT OF AUSTRALIA
) ) WESTERN AUSTRALIA DISTRICT REGISTRY ) W.A. No. G1 of 1979 ) GENERAL DIVISION )
ON APPEAL FROM THE SUPREME COURT OF WESTERN AUSTRALIA
BETWEEN : WHITFORDS BEACH PTY.LTD. Appellant
AND : THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
Respondent
ORD
ER
JUDGES MAKING ORDER : Brennen, Deane and Fisher JJ.
DATE OF ORDER : 20 December 1979.
WHERE MADE : Sydney.
THE COURT ORDERS THAT:
1. The appeal be allowed.
2. The judgment and orders appealed from be set aside and in lieu thereof it be ordered that -
(a) the appellant's appeals against 1ts amended assessments to income tax for the years of income ended 30 September 1972, 1973 and 1974 and its assessment to income tax for the year of income ended 30 September 1975 be
allowed;
(b) the matters be remitted to the respondent to re-assess on the footing that no part of the proceeds of the sale of 1,584 acres of land being the land acquired by the appellant from one Thomas Willie Simpson in or about April 1954 constitutes assessable income of
the appellant;
(c) the respondent pay to the appellant the appellant's costs to be taxed of ihe hearing of the appeals in the Supreme Court of Western
Australia.
3. The question of any other costs in the Supreme Court of Western Australia be remitted to that Court to dcterinine
We try to embed the page this law was scraped from. If the site blocks framing, you still get the link and a local excerpt.
Last checked with source on —
Checking whether the official page can be embedded…
Plain-English simplify of this law: a short summary, key points, and both sides of the argument. Generated on first view via Replicate, then cached. Vote on what helps your study.
No study brief is cached for this law yet. Sign up to generate a plain-English brief.
Sign up to generate