Commissioner of Taxation v Bamford [2010] HCA 10

HIGH COURT OF AUSTRALIA

FRENCH CJ,

GUMMOW, HAYNE, HEYDON AND CRENNAN JJ

Matter No S310/2009

COMMISSIONER OF TAXATION APPELLANT

AND

PHILLIP BAMFORD & ORS RESPONDENTS

Matter No S311/2009

PHILLIP BAMFORD & ANOR APPELLANTS

AND

COMMISSIONER OF TAXATION & ANOR RESPONDENTS

Commissioner of Taxation v Bamford

Bamford v Commissioner of Taxation

[2010] HCA 10

30 March 2010

S310/2009 & S311/2009

ORDER

In each matter, the appeal is dismissed.

On appeal from the Federal Court of Australia

Representation

J T Gleeson SC with T P Murphy SC and K J Deards for the appellant in S310/2009 and the first respondent in S311/2009 (instructed by Australian Government Solicitor)

Submitting appearance for the first and second respondents in S310/2009

A H Slater QC with R L Seiden and I S Young for the appellants in S311/2009 and the third respondent in S310/2009 (instructed by Robert Richards & Associates)

Submitting appearance for the second respondent in S311/2009

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

CATCHWORDS

Commissioner of Taxation v Bamford

Bamford v Commissioner of Taxation

Income tax – Income of trust estate – Assessable income of beneficiary – Income Tax Assessment Act 1936 (Cth) ("the Act"), s 97(1) provided that where beneficiary presently entitled to "a share of the income of the trust estate", assessable income of beneficiary included "that share of the net income of the trust estate" – Beneficiaries entitled to specific amounts of distributable income – One beneficiary also entitled to residue of distributable income – Disparity between net income and distributable income – Meaning of "that share of the net income" in s 97(1)(a)(i) of the Act – Whether beneficiaries to be assessed by reference to their proportion of distributable income or specific amounts.