DEPUTY COMMISSIONER OF TAXATION v BLUEBOTTLE UK LIMITED and Others [2006] NSWCA 360

New South Wales Court of Appeal

CITATION: DEPUTY COMMISSIONER OF TAXATION v BLUEBOTTLE UK LIMITED and Others [2006] NSWCA 360

HEARING DATE(S): 11 September 2006

JUDGMENT DATE: 14 December 2006

JUDGMENT OF: Mason P at 1; Santow JA at 2; Basten JA at 99

DECISION: Appeal Allowed. See orders at [135], order 2 being stayed until 16 February 2007 or further order.

CATCHWORDS: TAXATION – PROPERTY – EQUITY – Section 255 Income Tax Assessment Act 1936 ("ITAA") was purportedly applied by notice requiring the retention of money, from dividends declared but not paid, for tax due or to become due by non-resident to whom dividends were to be paid – recipient of notice thereafter purported to assign dividends previously declared but not paid to third party affiliate – whether dividend debt arose upon declaration or only upon payment or due date for payment – whether notices purportedly given pursuant to s255 ITAA actually complied with its provisions or otherwise triggered its provisions – the nature of the relevant assignments, whether legal or equitable, and when they took effect with respect to the dividend debt – whether assignments of dividend prevailed over s255 ITAA – nature of statutory command or charge imposed by s255 ITAA and effectiveness in equity – Construction of s255 including meaning of "liability".

Company Law Review Act 1998 (Cth) Corporations Act 2001 (Cth) s254U, s254V LEGISLATION CITED: Dividend Duty Act of 1890 (Qld) Income Tax Assessment Act 1936 (Cth) s218, s255 Property Law Act, 1974 (Qld) s199 Taxation Administration Act 1953 (Cth) s260-5

Abbey National Building Society v Cann [1991] AC 56 Anning v Anning (1907) 4 CLR 1049 Bakewell v Deputy Federal Commissioner of Taxation (S.A.) (1937) 58 CLR 743 Bond v Barrow Haematite Steel Company [1902] 1 Ch 353 Booth v FCT (1987) 164 CLR 159 Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 Commissioner of taxation v Donnelly (1989) 25 FCR 432 (FC) Commissioner of Taxation v Government Insurance Office of New South Wales (1993) 45 FCR 284 (FC) Commissioner of Taxation v Wong (2002) 121 FCR 60 Crimmins v Stevedoring Industry Finance Committee (1999) 200 CLR 1 Elsinora Global Ltd v Healthscope Ltd (2005) 227 ALR 570; 2006 ATC 4061 Elsinora Global Ltd v Healthscope Ltd (No. 2) [2006] FCA 18; (2006) 61 ATR 482 Federal Commissioner of Taxation v Citylink Melbourne Ltd (2006) 80 ALJR 1282 FCT v Everett (1978) 38 FLR 26 Herdegen v FCT (1988) 84 ALR 271 Holroyd v Marshall (1862) 10 HLC 191 CASES CITED: Holt v Heatherfield Trust [1942] 2 KB 1 Imray v Griffin (1889) 10 LR(NSW) (L) 114 Industrial Equity Limited v Blackburn (1977) 137 CLR 567 McIntyre v Gye (1994) 51 FCR 472 Marra Developments Ltd v BW Rofe Pty Ltd [1977] 2 NSWLR 616 Norman v FCT (1962-63) 109 CLR 9 North Sydney Brick & Tile Co Ltd v Darvall (1989) 17 NSWLR 327 Orica Ltd v CGU Insurance Ltd (2003) 59 NSWLR 14 Palette Shoes v Krohn (1937) 58 CLR 1 Performing Right Society v London Theatre of Varieties [1924] AC 1 Re Lind; Industrials Finance Syndicate v Lind [1915] 2 Ch 345 Redman v Permanent Trustee Co of NSW Ltd (1916) 22 CLR 84 Regina v Stevenson (1896) 7 QLJ 7 Southern British National Trust Ltd v Pither (1937) 57 CLR 89 at 105 Tailby v Official Receiver (1888) 13 App Cas 523 Webb v Stenton (1883) 11 QBD 518 (CA) William Brandt's Sons v Dunlop Rubber [1905] AC 454)