Hooker Rex Pty Ltd v Federal Commissioner of Taxation [1970] HCA 23; (1970) 123 CLR 71 (30 July 1970)

HIGH COURT OF AUSTRALIA

HOOKER REX PTY. LTD. v. FEDERAL COMMISSIONER OF TAXATION [1970] HCA 23; (1970) 123 CLR 71

Income Tax (Cth)

High Court of Australia

McTiernan J.(1)

CATCHWORDS

Income Tax (Cth) - Assessable income - Arrangement etc. to avoid tax - Purpose and effect of arrangement - Ordinary business dealing - Profitable project in land development - Subsidiary company with loss used to undertake project - Land development company exercised options to purchase land as trustee for subsidiary - Income Tax and Social Services Contribution Assessment Act 1936- 1961 (Cth), s. 260.

HEARING

Sydney, 1969, April 17, 18, 21, 22; 1970, July 30. 30:7:1970

DECISION

A. F. Grant Pty. Ltd. v. MacDonald (1960) Qd R 465

Newton v. Commissioner of Taxation (1958) AC 450

Federal Commissioner of Taxation v. Newton [1957] HCA 99; (1957) 96 CLR 577

Jaques v. Federal Commissioner of Taxation [1923] HCA 70; (1924) 34 CLR 328

Simms v. Registrar of Probates (1900) AC 323

Deputy Federal Commissioner of Taxation v. Purcell [1921] HCA 59; (1921) 29 CLR 464

W. P. Keighery Pty. Ltd. v. Federal Commissioner of Taxation [1957] HCA 2; (1957) 100 CLR 66

Clarke v. Federal Commissioner of Taxation [1932] HCA 46; (1932) 48 CLR 56

War Assets Pty. Ltd. v. Federal Commissioner of Taxation [1954] HCA 81; (1954) 91 CLR 53

Cecil Bros. Pty. Ltd. v. Federal Commissioner of Taxation [1964] HCA 82; (1964) 111 CLR 430

Elmiger v. Inland Revenue Commissioner (N.Z.) (1966) 10 AITR 145