Federal Court of Australia
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| JUDGMENT No. 659.1] Bane MT CHWORDS
INCOME TAX - Arrangement to avoid liability for tax - sale of all shares in company with current and accumulated profits - business of company sold ~ assets converted into cash - whether proceeds from sale of shares assessable in hands of former shareholders -
assets of company paid to nominee of purchaser upon sale -~
complex series of transactions - whether sale void as against Commissioner.
INCOME TAX - Incidence of tax - situation remaining after "arrangement" avoided as against Commissioner - whether sale price assessable under s.44, s.47 or s.108 - distribution by company of assets comprising issued capital and profits - s.260
applies only "so far as"... arrangement has required "purpose or
effect".
Income Tax Assessment Act 1936 ss.44, 47, 108, 260
BETWEEN
THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Appellant
- and -
GREGRHON INVESTMENTS PTY. LIMITED, NORMAN CECIL CLOUGH and NANCYE JEAN CLOUGH
Respondents
CORAM: Fisher, Lockhart and Spender Jd.
Brisbane 26 November 1987
PRIRCIPAL REGISTRY
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IN THE FEDERAL COURT OF AUSTRALIA
) ) SOUTH AUSTRALIA DISTRICT REGISTRY } Nos. G8-10 of 1987 ) )
GENERAL DIVISTON
JUDGES MAKING ORDER
On appeal from a single judge of the Supreme Court of New South Wales
BETWEEN:
THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
Appellant
- and ~
GREGRHON INVESTMENTS PTY. LIMITED, NORMAN CECIL CLOUGH and NANCYE JEAN CLOUGH
Respondents
MINUTES OF ORDER FISHER, LOCKHART & SPENDER Jd.
WHERE MADE : BRISBANE
DATE OF ORDER 3
26 NOVEMBER 1987
THE COURT ORDERS THAT:
The appeals be allowed.
The question of additional tax be remitted to the Supreme Court of New South Wales (Administrative Law Division) for further consideration.
The respondents pay the costs of the appellant both on these appeals and at first instance.
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