W.R. Carpenter Holdings Pty Limited v Commissioner of Taxation [2008] HCA 33

HIGH COURT OF AUSTRALIA

GLEESON CJ,

GUMMOW, KIRBY, HAYNE, HEYDON, CRENNAN AND KIEFEL JJ

Matter No S652/2007

W.R. CARPENTER HOLDINGS PTY LIMITED APPELLANT

AND

COMMISSIONER OF TAXATION RESPONDENT

Matter No S653/2007

W.R. CARPENTER AUSTRALIA PTY LIMITED APPELLANT

AND

COMMISSIONER OF TAXATION RESPONDENT

W.R. Carpenter Holdings Pty Limited v Commissioner of Taxation

W.R. Carpenter Australia Pty Limited v Commissioner of Taxation

[2008] HCA 33

31 July 2008

S652/2007 & S653/2007

ORDER

1. In matter S652/2007, the record in this Court be amended to show W.R. Carpenter Holdings Pty Limited alone as appellant.

2. In matter S653/2007, the record in this Court be amended to show W.R. Carpenter Australia Pty Limited alone as appellant.

3. In each matter, appeal dismissed with costs.

On appeal from the Federal Court of Australia

Representation

J W Durack SC with J H Momsen and R L Seiden for the appellants (instructed by Becwell Legal Services Pty Limited)

A Robertson SC with J W de Wijn QC and S H Steward for the respondent (instructed by Australian Government Solicitor)

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CATCHWORDS

W.R. Carpenter Holdings Pty Limited v Commissioner of Taxation

W.R. Carpenter Australia Pty Limited v Commissioner of Taxation

Income tax – International agreements – Dealings between parties not at "arm's length" – Income Tax Assessment Act 1936 (Cth), s 136AD(1) deemed consideration equal to "arm's length consideration" to be received or receivable by taxpayer in certain circumstances if respondent Commissioner determined sub-section should apply – Commissioner determined s 136AD(1) should apply to appellant taxpayers and included "deemed" interest in assessable income – Whether Commissioner obliged to consider fairness and reasonableness to taxpayer and taxpayer purpose or motive when making determination – Relevance of Constitution to statutory construction where tax liability dependent on conclusion of Commissioner respecting particular circumstance or state of affairs.