Coleambally Irrigation Mutual Co-Operative Ltd v Commissioner of Taxation [2004] FCA 2

FEDERAL COURT OF AUSTRALIA

Coleambally Irrigation Mutual Co-Operative Ltd v Commissioner of Taxation [2004] FCA 2 TAXATION – whether sinking fund levy contributions paid or payable to the applicant, a co-operative, fell within the mutuality principle, or were assessable income under s 6-5 of the Income Tax Assessment Act 1997 (Cth) – where there was a lack of identity between the contributors and participants in the co-operative the mutuality principle did not apply, and the sinking fund levy contributions were assessable income Income Tax Assessment Act 1997 (Cth) s 6-5 Co-operatives Act 1992 (NSW) Irrigation Corporations Act 1994 (NSW) Water Management Act 2000 (NSW) s 119 Bohemians Club v Acting Federal Commissioner of Taxation (1918) 24 CLR 334 referred to English and Scottish Joint Co-operative Wholesale Society Ltd v Commissioner of Agricultural Income Tax, Assam [1948] AC 405 referred to Federal Commissioner of Taxation v Australian Music Traders Association (1990) 90 ATC 4536 followed Fletcher v Income Tax Commissioner [1972] AC 414 referred to Revesby Credit Union Co-operative Ltd v Federal Commissioner of Taxation (1965) 112 CLR 564 followed Royal Automobile Club of Victoria (1973) 73 ATC 4153 referred to Social Credit Savings & Loans Society Ltd v Federal Commissioner of Taxation (1971) 125 CLR 560 followed Sydney Water Board Employees Credit Union v Federal Commissioner of Taxation (1973) 129 CLR 446 referred to COLEAMBALLY IRRIGATION MUTUAL CO-OPERATIVE LTD v COMMISSIONER OF TAXATION N693 OF 2003 HILL J 6 FEBRUARY 2004 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N693 OF 2003

BETWEEN: COLEAMBALLY IRRIGATION MUTUAL CO-OPERATIVE LTD

APPLICANT

AND: COMMISSIONER OF TAXATION

RESPONDENT

JUDGE: HILL J