Curran v Commissioner of Taxation (Cth) [1974] HCA 46

High Court of Australia Barwick C.J. Menzies, Gibbs and Stephen JJ. Curran v Commissioner of Taxation (Cth) [1974] HCA 46

ORDER Order that the questions in the case stated by Jacobs J., viz. the following questions:

1. Did the appellant as claimed in par. 22 hereof incur a loss in relation to the 200 shares in Stewart Bacon purchased by him on 29th April 1969, in the sum of $185,848.96, which was an allowable deduction under the provisions of the Income Tax Assessment Act, 1936-1969?

2. Did the appellant incur a loss on the sale of the 191,000 shares in Stewart Bacon issued to him on 6th May 1969, in the sum of $2,368.40, which is an allowable deduction under the provisions of the said Act?

3. In relation to the appellant's trading in shares in the companies listed in par. 24 hereof did he incur:

(a) a loss of $22,573

(b) a loss of some other, and if so, what amount?

(c) a profit of $556, or

(d) a profit of some other, and if so, what amount?

be answered as follows:

1. and 2. The appellant suffered a deductible loss in relation to all the shares in Stewart Bacon in the sum of $188,217.36.

3. By consent —

(a) No.

(b) Yes — $22,513.

(c) Unnecessary to answer.

(d) Unnecessary to answer.

The respondent Commissioner to pay the costs of the case stated.

Cur. adv. vult.

The following written judgments were delivered:—

Nov. 4 Barwick C.J.

The appellant, a stockbroker, during the tax year ending on 30th June 1969, was dealing in shares on his own account. In keeping his financial accounts in connexion with that business he treated the shares which he bought as his stock in trade, bringing to account as the opening entry for the financial year all the shares he then had on hand at their market value or cost whichever was the lower, entering to his debit the cost of all the shares which he acquired during the year and to his credit the amounts received for shares of which he disposed during the year, and bringing to account at market value or cost whichever was the lower as a closing entry the shares of which he remained possessed at the end of the financial year. The difference between the total of the first two items and the total of the second two represented his gain or loss in his share dealing for the year. He had also an income account to which he carried the amount of dividends which he received during the year.