North Australian Pastoral Company Limited v Federal Commissioner of Taxation [1946] HCA 17

Lie ALI

Ay NP cog

71 C.L.R.] OF AUSTRALIA.

NORTH AUSTRALIAN PASTORAL COM-

(HIGH COURT OF AUSTRALIA.]

DANVGIMUTED: al APPELLANT ;

AND

FEDERAL COMMISSIONER OF TAXATION RESPONDENT.

Income Tax (Cth.}—Assessment—Enemption—Resident of Northern Territory—

Income from primary production—Pastoral company, where "resident" — Rebate on dividends—Income Tax Assessment Act 1936-1944 (No. 27 of 1936— No. 28 of 1944), 83, 23 (m), 46 (3).

'A company may have a dual residence for fiscal purposes and may be resident in the place where it is incorporated and has its registered office, if that is where it carries on its business undertaking, although at the same time it is also resident elsewhere at the place in which the directors meet and its central control is exercised.

The taxpayer company was incorporated in the Northern Territory. Its business was the breeding, purchasing, depasturing and selling of cattle upon and from its cattle station, "" Alexandria," in the territory. At all material times its registered office was at "Alexandria," but, under a power in its articles, it established a branch office at Brisbane. During the two financial years beginning Ist July 1939 and ending 30th June 1941 all meetings of the directors and shareholders were held at the Brisbane office, where the secretary (who resided in Brisbane) kept the common seal and share register. Then a new secretary, who resided at '' Alexandria," was appointed, and the seal and share register were transferred into his custody there. The books of account were kept at '' Alexandria," but a duplicate accounting was carried out at the Brisbane office. Entries relating to cash, banking and dividends originated in Brisbane and the remainder at '" Alexandria." The chief bank account was in Brisbane, but there was another at Cloncurry for the use of the station. The issued share capital was held by about twenty-six persons, of whom some resided in England, some in Victoria, some in Tasmania and some in Queensland. There were seven directors, of whom five resided in Queensland, one in Tasmania and one in England, the last-mentioned being represented by an alternate who resided in Brisbane. Until May 1943 F.,