Commissioner of Taxation of the Commonwealth of Australia v. Coppleson, J.V.M. [1981] FCA 188

lyY.,

CATCHWORDS

Income tax - Deduction - Transfer of redeemable preference shares to charitable institution - Whether transfer involved a

gift - Correct basis for valuation.

Companies - Article giving right to shareholder to demand redemption - Whether company in default if unable to redeem because no profits available - Rights of shareholders to

compel liquidation on "just and equitable" ground.

Income Tax (Assessment) Act 1936, s.78(1).

Companies Ordinance 1962 (A.C.T.), s.61.

COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Vv. J.V.M. COPPLESON

N.S.W. No. G15 of 1981

Bowen C.J., Frank1 and Fisher JJ.

30 October 1981

Sydney.

IN THE FEDERAL COURT OF AUSTRALIA)

) NEW SOUTH WALES DISTRICT REGISTRY) No. G15 of 1981

) GENERAL DIVISION )

ON APPEAL from the Supreme Court of New South Wales

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND:

J.V.M. COPPLESON

Respondent ORDER JUDGES MAKING ORDER: Bowen C.J., Franki and Fisher JJ. DATE OF ORDER: 30 October 1981 WHERE MADE: Sydney

THE COURT ORDERS THAT:

1. The appeal so far as it concerns the validity of the gift be dismissed.

2. The appeal so far as it concerns the value of the shares be allowed.

3. In lieu of $36,184.00, the value of the shares given be

assessed at $24,000.

The income tax assessment of Dr. Coppleson for the year of income ended 30 June 1976 be remitted to the Commissioner t

for amendment in accordance with the judgment of the

court.

IN THE FEDERAL COURT OF AUSTRALIA)

) NEW SOUTH WALES DISTRICT REGISTRY) No. G15 of 1981

) GENERAL DIVISION )

ON APPEAL from the Supreme Court of New South Wales

BETWEEN:

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Appellant

AND:

J.V.M. COPPLESON

Respondent

CORAM: Bowen C.J., Franki and Fisher JJ.

30 October 1981.

REASONS FOR JUDGMENT

This 1S an appeal from a decision of the Supreme Court of New South Wales allowing Dr. Coppleson ("the taxpayer") an income tax deduction for the year of income ended 30 June 1976 of $36,184.00. His Honour found this to be the value, less certain deductions, of redeemable preference shares in the company, Wirrawanda Limited, which the taxpayer, by his attorney Mr. Joye, transferred to Royal Prince Alfred Hospital on 25 June 1976. The transfer was expressed to be for "nil"