Bennett v Federal Commissioner of Taxation [1947] HCA 25

Br Tae. ys OBas Ak

BE

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y

HIGH COURT

{HIGH COURT OF AUSTRALIA.) " .

é 3 : i 5 : APPELL.

AND '

TION, oe ook Li ego ee eee

H.C. or A. Income Tax—Assessable income—Company—Absolute control vested in manag 1947, director—Release of such control—Lump sum paid therefor, by instalments, to

Seay managing director—Capital or income—Income Tax Assessment Act 1936.

pEONers (No. 27 of 1936—No. 50 of 1942), s. 25.

July 25; : Big is. By an iudentire made t4°August 1036\totwenns Banal 2 teat) company, B. was appointed managing director of 'T. for a term of seven

Williams J.

with wide powers, which in effect gave him complete control, and at a spe salary plus bonus and commission, Under an indenture made in May B. was appointed for a term 6f seven years from August 1935 to man subject to the control of its directors, the business of S., another broadcast company, but as ay was a to appoint five oF those. Beeichs B.

Bide Ehgteenea by cortaia charcheldets uns carinal wool the :ecqulring company control of 'resulted in the execution of to ind

covenanted to pay B. the sum of £12,255 in instalments of £3, 000 ae 1940; £4,000 in January 1941; and £5,255 in January 1942. indenture provided for the re-appointment of B. as managing direc until January 1940, at the same annual remuneration but without control and in all respects he was required to conform to and cor the directions from time to time given to him by 'P.'s directors. 4 to renew the appointment for successive periods until August reserved to B. and 'T. respectively. Provision was made in the first i for the refunding by B. to T. of one or more of the above-mention«

ae at a

OF AUSTRALIA. 431 —

'renewal. By an indenture made in November 1937 the indenture of May H. C. or A. 1936 and the second indenture of November 1936 were cancelled and the 1947. n as to the refunding by B. was deleted from the first indenture of = "7 Bexsert °.