Poole v Commissioner of Taxation (Cth) [1970] HCA 25

High Court of Australia Walsh J. Poole v Commissioner of Taxation (Cth) [1970] HCA 25

ORDER Poole v. The Commissioner of Taxation. Appeal dismissed with costs. Assessment confirmed. Dight v. The Commissioner of Taxation. Appeal allowed with costs. Assessment remitted to the Commissioner of Taxation to be amended in the manner stated in the judgment, that is to say, to be varied on the basis that the appellant's taxable income is reduced by one-eighth of the sum of $2,148 paid by Cooinda Pastoral Company as shown in the partnership income tax return of that firm.

Cur. adv. vult.

Aug. 5 Walsh J. delivered the following written judgment:—

These two appeals were heard together. Each appellant lodged an objection in writing against an assessment of income tax for the year ending 30th June 1968, and when the objection was disallowed, requested the Commissioner to treat it as an appeal and to forward it to this Court pursuant to s. 187 of the Income Tax Assessment Act 1936-1968 Cth.

The appellant William Thomas Carew Poole, his wife and his two daughters, one of whom is the appellant Jean Dight, are members of a partnership which carries on the business of farmers and graziers under the name Cooinda Pastoral Company, pursuant to an agreement contained in a deed made on 23rd June 1955 and a supplementary deed made on 18th October 1961. The effect of the deeds is that Mr. Poole is entitled to one-half, Mrs. Poole to one-quarter, and each of the daughters to one-eighth of the net profits of the business and that upon a winding up of the partnership they will be entitled, in the same shares, to whatever surplus is available for distribution. No term is fixed for the duration of the partnership, but it is determinable by any partner on giving six months' notice in writing.