Lloyd v Commissioner of Taxation (Cth)

High Court of Australia BARWICK CJ, McTiernan, Gibbs, STEPHEN and Murphy JJ Lloyd v Commissioner of Taxation (Cth)

ORDER Order The questions asked in the case stated are answered as follows:— (1) Are the amounts received by the appellant during the year ending 30 June 1973 from the forest company with respect to the bond and covenants or any one or more of the said amounts income in the hands of the appellant and therefore assessable against the appellant under s 25 of the Income Tax Assessment Act 1936 (as amended)? Answer: No. (2) Are the amounts received by the appellant during the year ending 30 June 1973 from the forest company with respect to the bond and covenants or any one or more of the said amounts not income in the hands of the appellant and therefore not assessable against the appellant under s 25 of the said Act? Answer: Yes. (3) Are the said amounts or any one or more of them assessable income in the hands of the appellant being profits arising from the carrying on or carrying out of a profit-making undertaking or scheme under s 26(a) of the said Act? Answer: No. (4) Are the said amounts or any one or more of them not assessable income in the hands of the appellant not being profits arising from the carrying on or carrying out of a profit-making undertaking or scheme under s 26(a) of the said Act? Answer: Yes. Remit case to the Supreme Court of South Australia for determination in accordance with the answers given. Commissioner to pay appellant's costs of the case stated. Barwick CJ

This appeal was argued with the appeal of Milne v FC of T (1975) 5 ATR 785. There is no real difference in the facts of the two cases as would make any part of my reasons in the appeal of Milne v FC of T inapplicable to this appeal. Accordingly, it will suffice to narrate the significant facts in this appeal, the result of which will be governed by the judgment in Milne's Case.