Grant v Commissioner of Taxation (Cth) [1976] HCA 64

High Court of Australia Stephen, Mason and Jacobs JJ. Grant v Commissioner of Taxation (Cth) [1976] HCA 64

ORDER Order that the questions asked in the case stated be answered as follows:

1. Was the payment of $97,000.00 by the appellant to the company for 97,000 "C" class preference shares allotted by the company to the appellant on 5th February 1969 a "disposition of property" within the meaning of ss. 4 and 17 of the Gift Duty Assessment Act, 1941 (as amended) (hereinafter called "the Act"),

Answer: Yes.

2. If the answer to question 1 is "yes" were the said shares so allotted "consideration in money's worth" passing from a "disponee" namely, the company, to a "disponor" namely, the appellant, within the meaning of ss. 4 and 17 of the Act?

Answer: Yes.

3. If the answer to question 2 is "yes"

(a) should the said shares be valued as at 5th February 1969, upon a liquidation basis or a dividend basis or a profits basis or any other and, if so, what basis?

(b) what was the value of the said shares as at that date?

Answer: A dividends basis.

4. If the value of the said shares as at 5th February 1969 was less than $97,000.00 were the said shares so allotted "consideration in money's worth" passing from the company to the appellant consideration which was not "fully adequate" within the meaning of ss. 4 and 17 of the Act?

Answer: Yes.

5. If the answer to question 4 is "yes" did the appellant on 5th February 1969 make a gift to the company, or to any other person, within the meaning of s. 4 of the said Act?

Answer: Yes.

6. If the answer to question 5 is "yes" was the "extent of that inadequacy" within the meaning of s. 17 of the Act the difference between $97,000.00 and the value of the said shares as at 5th February 1969?

Answer: Yes.

1. If the answer to question 6 is "yes" was the amount of that difference the "value of the gift" within the meaning of s. 17 of the Act?