Commissioner of Taxation of the Commonwealth of Australia v De Luxe Red & Yellow Cabs Co-Operative (Trading) Society Ltd & Ors [1998] FCA 361

FEDERAL COURT OF AUSTRALIA

Income Tax - superannuation guarantee charge - whether payments to taxi drivers by taxi operators constitute "salary or wages" under the Income Tax Assessment Act 1936 - whether taxi operators are required to deduct income tax or pay a superannuation guarantee charge - whether relationship between operators and drivers is one of employment or bailment. Income Tax Assessment Act 1936 - ss 221C(1A), 221A Superannuation Guarantee (Administration) Act 1992 - ss 11 and 12 Industrial Relations Act 1996 (NSW) - Chapter 6 Passenger Transport Act 1990 (NSW) - s 7 and s 29 Yellow Cabs of Australia Limited v Colgan (1930) AR (NSW) 137 - cons. Dillon v Gange (1941) 64 CLR 253 - cons. Northern District Radio Taxicab Co-operative Ltd v Commissioner of Stamp Duties [1975] 1 NSWLR 346 - cons. Federal Commissioner of Taxation v J. Walter Thompson (Australia) Pty Ltd (1944) 69 CLR 227 - cons. Stevens v Brodribb Sawmilling Co Pty Ltd (1986) 160 CLR 16 - cons. COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA -V- DE LUXE RED AND YELLOW CABS CO-OPERATIVE (TRADING) SOCIETY LTD, ABC RADIO TAXIS CO-OPERATIVE LTD, WESTERN SUBURBS TAXI DEPOT PTY LTD, YELLOW CABS (QUEENSLAND) PTY LTD, VERMONT AUTOGAS PTY LTD and VAG NOMINEES PTY LTD, VANNEVAR PTY LTD, RAYMOND JOHN MEREDITH AND RUSSELL ARMSTRONG and DIANNE M ARMSTRONG NG 760 of 1997

JUDGES: BEAUMONT, FOSTER AND SACKVILLE JJ PLACE: SYDNEY DATE: 15 APRIL 1998

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 760 of 1997

ON APPEAL FROM A JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

AppELLant

AND: DE LUXE RED AND YELLOW CABS CO-OPERATIVE (TRADING) SOCIETY LIMITED

First Respondent

ABC RADIO TAXIS CO-OPERATIVE LIMITED