Adelaide Racing Club Incorporated v Commissioner of Taxation (Cth) [1964] HCA 57

High Court of Australia Owen J. Adelaide Racing Club Incorporated v Commissioner of Taxation (Cth) [1964] HCA 57

ORDER Appeal allowed with costs. Matter remitted to the Commissioner so that he may vary the assessment accordingly.

Cur. adv. vult.

The following written judgment was delivered:—

Oct. 13 Owen J.

The appeals in these matters relate to the years ending 30th June 1960, 1961 and 1962 respectively.

The appellant is a racing club incorporated under the provisions of the Associations Incorporation Act of South Australia. It has a large membership and was formed for the purpose of conducting horse-racing meetings in Adelaide. Its meetings are held on an area of about fifty-eight acres of park land which is vested in the Corporation of the City of Adelaide and leased by that Corporation to the Club pursuant to s. 854 of the Local Government Act.

During the years under review the Club effected a number of improvements on the land leased. It built a new members' stand; it moved what was formerly the members' stand to another part of the land, re-erected it there and put it into use as a public stand; and it reconstructed part of the course so as to provide a straight five-furlong stretch, part of which lay outside the boundary of the leased land. It also effected some other improvements on the course such as a boundary wall and a new steeplechase fence. The details of these improvements and of the expenditure on them need not be discussed. The broad question is whether this expenditure or some part of it falls within s. 88 (2) of the Income Tax and Social Services Contribution Assessment Act. If it does a proportion of it is allowable as a deduction under that sub-section. Counsel stated that once the general matters raised in argument were decided, the parties would be able to work out the necessary details and the amounts, if any, allowable as deductions.