Grofam P/L & Ors v. The Commissioner of Taxation of the Commonwealth of Australia [1994] FCA 950

JUDGMENT No. wnt Ou LE.

CATCHWORDS

CONTRACT - Agreement for settlement of previous court

proceedings and other disputes - dispute as to true construction of terms of settlement - no issue of principle involved.

and e mmissioner of Taxation of the

Commonwealth of Australia VG 35 of 1994

RECEIVED Olney J -9 DEC 1994 Melbourne FEDERAL COURT OF 2 December 1994 AUSTRALIA

PRINCIPAL

IN THE FEDERAL COURT OF AUSTRALIA ) VICTORIA DISTRICT REGISTRY ) GENERAL DIVISION ) No VG 35 of 1994

BETWEEN:

GROFAM PTY LTD (ACN 004 970 487) and Ors

(According to attached schedule) Applicants - and - THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent

Coram: Olney J Place: Melbourne

Judgment: 9 December 1994

MINUTE OF ORDER

QHE COURT ORDERS THAT the application be dismissed with costs.

NOTE: Settlement and entry of orders is dealt with in

Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA ) VICTORIA DISTRICT REGISTRY ) )

GENERAL DIVISION No VG 35 of 1994

BETWEEN:

GROFAM PTY LID (ACH 004 970 487) and Ors {According to attached schedule)

Applicants - and — THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent

Coram: Olney J Place: Melbourne

Judgment: 9 December 1994

REASONS FOR JUDGMENT

The applicants seek declaratory relief concerning the proper construction of an agreement entered into on 22 September 1993. The jurisdiction of this Court is invoked, without objection, pursuant to s 4(1) of the Jurisdiction of Courts

(Cross Vesting) Act 1987 (Victoria).

The following facts are established on the pleadings.

During the period 1989 to 1992 the respondent (the Commissioner) conducted an audit of the income tax affairs of the applicants in the course of which disputes arose both as to whether any, and if so what, taxable profit or income was derived by any, and if so which, of the applicants by or from