Automotive Invest Pty Limited v Commissioner of Taxation [2024] HCA 36

HIGH COURT OF AUSTRALIA

GAGELER CJ,

EDELMAN, STEWARD, GLEESON AND JAGOT JJ

AUTOMOTIVE INVEST PTY LIMITED APPELLANT

AND

COMMISSIONER OF TAXATION RESPONDENT

Automotive Invest Pty Limited v Commissioner of Taxation

[2024] HCA 36

Date of Hearing: 13 June 2024

Date of Judgment: 16 October 2024

S170/2023

ORDER

1. Appeal allowed with costs.

2. Set aside the orders of the Full Court of the Federal Court of Australia made on 11 August 2023 and, in their place, order that:

(a) appeal allowed with costs;

(b) set aside the orders of the Federal Court of Australia made on 19 April 2022 and, in their place, order that:

(i) the applicant's appeal against the respondent's objection decision be allowed;

(ii) the objection decision be set aside, and the applicant's objection be allowed in full; and

(iii) the respondent pay the applicant's costs of the proceedings.

On appeal from the Federal Court of Australia

Representation

D H Bloom KC with K Josifoski and J P Patela for the appellant (instructed by King & Wood Mallesons)

C A Burnett SC with D P Hume and D R Lewis for the respondent (instructed by McInnes Wilson Lawyers)

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

CATCHWORDS

Automotive Invest Pty Limited v Commissioner of Taxation

Statutes – Construction – Meaning of "purpose" within A New Tax System (Luxury Car Tax) Act 1999 (Cth) ("LCT Act"), ss 9-5(1), 15-30(3) and 15-35(3) – Where appellant carried on business of acquiring and selling luxury and collectable cars – Where appellant displayed cars in "car museum" to attract purchasers – Where appellant objected to amended assessments of net amounts under Pt IVC of Taxation Administration Act 1953 (Cth) – Where amended assessments were premised on use of each car for purpose of holding as trading stock and for additional purpose of display in museum – Where increasing luxury car tax adjustment is applicable if taxpayer uses car for purpose other than quotable purpose – Whether assessment of purpose objective or subjective – Whether appropriate to exclude uses that are merely incidental, subservient, or means to an end to continuing use of car as trading stock – Whether phrase "no other purpose" in s 9-5(1) should be read as excluding alternative, but not additional, purposes.