The Commissioner of Taxation of the Commonwealth of Australia v Kareena Hospital Pty Ltd [1979] FCA 141

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CATCHANORDS

Income tax - Arrangement entered into by taxpayer with "loss" company - "Loss" company for limited period carrying on hospital business previously carried on by taxpayer - Whether s.260 operated so as to avoid the arrangements as against the Commissioner and to render the taxpayer liable

to tax.

Income Tax Assessment Act 1936, s.260.

THE COMMISSIONER OF TAXATION OF THE COMMONVVEALTH GF

AUSTRALIA V. KaRDENA HOSPITAL PTY. LIMITED

Nos. G97-100 cf 1978

Coram: Bowen C.J., Brennan and Lockhart JJ.

Sydney

20 December 1979.

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IN THE FED RAL COURT OF AUSTRALIA)

) NEW SOUTH WALES DISTRICT REGISTRY) Nos. G97-]00 of 1978

) GENERAL DIVISION )

ON APPEAL from the Supreme Court of New South Wales Administiative Law Division

BETWEEN:

THE COMMISSTONFR OF TAXATION OF

THe COMMONICALTH OF AUSTRALIA

Appellant

AND:

KAREENA HOSPITAL PTY. LTMITED

Respondent ORDER JUDGES MAKING ORDER: Bowen C.J., Brennan and Lockhart JJ. DATE OF ORDER: 20 December 1979 WHERE MADE: Sydney THE COURT ORDERS THAT: l. The appeals be dismissed. 2. The appellant pay to the respondent its costs of the

appeals.

ee eee re ee eee a

IN THE FEDERAL COURT OF AUSTRALIA)

) NEW SONTH WALES DISTRICT REGISTRY) Nos. G97~100 of 1978

) 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:

KAREENA HOSPITAL PTY. LIMITED

Respondent

CORAM: Bowen C.J., Brennan and Lockhart JJ.

20 December 1979.

REASONS FOR JUDGMENT .

BOWEN C.J.: These four appeals concern the operation of

s.260 of the Income Tax Assessment Act 1936. The facts are

set forth in detail in the reasons for judgment of Brennan and Lockhart JJ. and I shall not recapitulate them,

I am in general agreement with the reasons of my brethren and with their conclusion that the appeals should