SCHARKIE AND ANOTHER V. THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA 22/1967

REASONS FOR JUDGMENT

COURT : High Court of Australia. Sydney Registry.

PARTIES : SCHARKIE AND ANOR. versus

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

NATURE OF PROCEEDINGS : Thirteen appeals as to whether . property bought in 1954 and sold off in parts over a number of years, was acquired for resale at

a profit.

CORAM : MENZIES J.

JUDGMENT : Thirteen Appeals dismissed with costs.

DATE _OF JUDGMENT : 17th October 1968 at Melbourne.

SCHARKIE AND ANOR

ve

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

MENZIES J.

THE COMMISSIONER OF TAXATION

OF THE COMMONWEALTH OF AUSTRALIA

Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No. Appeal No.

JUDGMENT 232527293133 of of of of of of of of of of of of of 196719671967196719671967 ORDER

dismissed dismissed dismissed dismissed dismissed dismissed dismissed dismissed dismissed dismissed dismissed dismissed

dismissed

with with with with with with with with with with with with with

costs. costs. costs. costs. costs. costs. costs. costs. costs. costs. costs. costs.

costs.

MENZIES J.

SCHARKIE AND ANOR.

Ve

THE, SSTONSR OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

On 20th October 1954 the taxpayers, C.R. Scharkie and his wife Edith Scharkie, acquired a property known as Maryvale by purchase for £40,000. Beginning in 1957 parts of Maryvale have been sold and assessments to income tax have been made on the footing that the profits from these sales constitute assessable income of the taxpayers. Although other objections to the assessments were made, the only one persisted in at the hearing was that Maryvale was not acquired for sale at a profit. The only question, is therefore, whether I am satisfied that profit making by the sale was not the dominant purpose of the taxpayers in buying Maryvale.