Brayson Motors Pty Ltd v Commissioner of Taxation (Cth)

High Court of Australia BRENNAN J Brayson Motors Pty Ltd v Commissioner of Taxation (Cth)

Brennan J

The plaintiff is a company carrying on business in Rockdale, a Sydney suburb. Its principal business is that of selling motor vehicles by retail. It also sells, by way of wholesale, spare parts and motor accessories for vehicles, being vehicles which it sells by retail. Being a wholesale merchant within the meaning of that term in s 3 of the Sales Tax Assessment Act (No 1) 1930 (Cth) (the No 1 Act), it became a "registered person" under that Act.

The certificate of registration issued to it in accordance with reg 7 of the Sales Tax Regulations states that the plaintiff's occupation is "wholesaler of motor vehicle spare parts" and that it "is registered as a wholesale merchant under the Sales Tax Assessment Acts (Nos 1-9)". The final links in the chain of distribution of the motor vehicles which the plaintiff sells (whether those vehicles are manufactured in Australia or are imported into Australia) are described in para 13 of the affidavit filed in these proceedings by Mr Bray, a director of the plaintiff: He deposes:

"The circumstances surrounding the acquisition of all motor vehicles acquired by the plaintiff in the period referred to in para 10 of this my affidavit are as follows:

(a) Robinsons Motors Wholesale Pty Ltd (hereinafter called 'Wholesale') purchased such motor vehicles from either the importer of the said motor vehicles, or a registered wholesale merchant, who had previously purchased such motor vehicles from an importer. And, in all cases, upon purchase, quoted its certificate of registration.

(b) Such goods, upon acquisition by Wholesale, were made subject to a charge in favour of the plaintiff, in consideration of the advance by the plaintiff to Wholesale of a sum equivalent to a large proportion of the value of the goods.