Taxation, Federal Commissioner of v Patcorp Investments Ltd [1976] HCA 67

High Court of Australia Mason, J. McTiernan, Gibbs, Stephen and Jacobs JJ. Taxation, Federal Commissioner of v Patcorp Investments Ltd

ORDER Patrick Corporation Limited v. Commissioner of Taxation of the Commonwealth of Australia Appeals allowed with costs. Assessments remitted to the Commissioner for reassessment in conformity with the reasons for judgment. Usual order as to exhibits. Patrick Corporation Limited v. Commissioner of Taxation of the Commonwealth of Australia Appeal allowed. Each party to pay its own costs. Assessment remitted to the Commissioner for reassessment in conformity with the reasons for judgment. Usual order as to exhibits. Minsoul Pty. Limited v. Commissioner of Taxation of the Commonwealth of Australia Minwall Pty. Limited v. Commissioner of Taxation of the Commonwealth of Australia M.T.A. Pty. Limited v. Commissioner of Taxation of the Commonwealth of Australia M.T.B. Pty. Limited v. Commissioner of Taxation of the Commonwealth of Australia M.T.D. Pty. Limited v. Commissioner of Taxation of the Commonwealth of Australia Appeals dismissed with costs. Assessments confirmed. Usual order as to exhibits. Appeals dismissed with costs. 1973, May 17 Mason J.

delivered the following written judgment:—

These eight appeals were heard together. Three appeals are by Patrick Corporation Ltd. (which I shall call "Mining Traders", the name by which the company was known until its corporate name was changed to Patrick Corporation Ltd. in the second half of 1970). The three appeals by Mining Traders relate to the income years ended on 30th June 1968, 1969 and 1970. In assessing the company to income tax the Commissioner refused to allow it rebates on dividends which it received from eight companies, including Austin Sales (Australia) Pty. Ltd. ("Austin Sales"), in which it bought shares that were subsequently sold at a loss and on which it performed what is commonly known as a "dividend-stripping" operation.