1 'Telephone book': documents tabled in response to Senate Motion No. 47 (given 7 September 1982) concerning straw companies and the Crimes (Taxation Offences) Act 1980. The description 'Telephone book' comes from the bulk of the tabled documents.
2 Second reading speech, Income Tax Assessment Bill 1978, 7 April 1978.
3 Review of Business Taxation, 1999, A Tax System Redesigned: Overview, Recommendations, Estimated impacts (Ralph report).
4 Author's emphasis.
5 [1936] AC 1.
6 (1934) 69F 2d 809.
7 [1943] 1 All ER 265 at 266.
8 (1980) 144 CLR 55 at 60-61.
9 Author's recollection, confirmed by Paul Keating.
10 References to sections, for example, section 260, are references to sections in this Act.
11 Ligertwood Report, Canberra, June 1961 pp. xii-xiii.
12 Act No.110 of 1964, amending Income Tax Assessment Act 1936.
13 See Chapter 12.
14 See Chapter 60.
15 FC of T v. Newton (1956) 96 CLR 578 at 596.
16 FC of T v. Newton (1957) 96 CLR 578.
17 Pactolus is a Greek word meaning 'river of gold'.
18 FC of T v. Newton (1958) 98 CLR 2 at 5.
19 Ibid, at 8.
20 Author's emphasis.
21 J Mathews, The Australian Taxation Office: Modernisation through People, Structures and Technology, UNSW Studies in Organisational Analysis and Innovation, Number 6, University of NSW, June 1992, p. 1.
22 Commissioner of Taxation Annual report, 1975-76, p. 19. Such reports hereafter referred to as 'Annual report' plus the year.
23 Ibid, p. 60.
24 Annual report, 1976-77, p. 6.
25 Annual report, 1975-76, p 9.
26 J Mathews, pp. 2-3.
27 Annual report, 1983-84, p. 15.
28 Ibid, p. 6.
29 (1961) 108 CLR 258.
30 Ibid, at 282.
31 Ibid, at 283.
32 Cecil Bros v. F C of T (1964) 111 CLR 430.
33 Peate v. F C of T (1964) 111 CLR 443.
34 (1971) 127 CLR 62.
35 (1957) 100 CLR 66.
36 (1971) 127 CLR 62.
37 (1976) 135 CLR 290.
38 In a dividend strip, shareholders instead of receiving a dividend, sell their shares for a capital (non-taxable) sum to a purchaser (typically a company) which then receives the dividend. The purchaser does not bear tax on the dividend, for example, because it is a share trader that can offset the cost of the shares against the dividend.
39 (1975) ATC 4007.
40 (1977) 140 CLR 314.
41 (1977) 140 CLR 330.
42 (1977) ATC 4538.
43 See Chapter 58.
44 (1974) 131 CLR 409 at 418.
45 See Chapter 15.
46 See Chapter 5.
47 For later action on this, see Chapter 56.
48 Annual report, 1976-77, p. 5.
49 Annual report, 1977-78, p. 4.
50 See Chapter 9.
51 Submission No. 885, November 1976. Cabinet submissions provide the primary means for the public service to communicate ideas and recommendations to government decision makers.
52 (1964) 111 CLR 430.
53 Submission No. 1218, 2 May 1977
54 Submission No. 1270, May 1977.
55 See Chapter 7, p. 39.
56 (1980) 144 CLR 55.
57 Part of second and third sets of documents contained in the 'Telephone book' tabled in the Senate on 22 September 1982.
58 Ibid.
59 Decision 3490, 21 July 1977. The formal record of the choices Cabinet makes on a particular issue.
60 Submission No. 1550, 29 July 1977.
61 See Chapter 12.
62 Honourable Sir Anthony Mason, 'Where Now?' The Australian Law Journal, Vol. 49, 1975, pp. 573-575.
63 Decision No. 3939 (Ad Hoc), 21 September 1977.
64 Decision No. 3965, 4 October 1977.
65 Decision No. 4080, 12 October 1977.
66 Document 3, Telephone book.
67 See Chapter 8.
68 Submission No. 1721, 7 October 1977.
69 Insomnia (No.2) Pty Ltd and Insomnia (No.3) Pty Ltd v. FCT 18 ATR 379.
70 Both Brigden and the author were then Second Commissioners.
71 Letter, 31 March 1978, attached to Cabinet Paper 276, 3 April 1978.
72 Decision No. 4939, 3 April 1978.
73 See Chapter 8.
74 Lord Howard de Walden v Inland Revenue Commissioners 1942 1 King's Bench 389.
75 See Chapter 28.
76 See Chapter 38.
77 See Chapter 9.
78 See Chapter 21.
79 C Webb, 'How to outwit the taxman with the charity plan', The National Times, Sydney, 8-13 August 1977, p. 3.
80 Decision No. 3726, 23 August 1977.
81 Decision No. 3939 (Ad Hoc), 21 September 1977.
82 Sydney Morning Herald, 2 August 1977.
83 (1980) ATC 4438.
84 Ibid.
85 See Chapter 5.
86 Decision No. 3965, 4 October 1977.
87 Decision No. 4849, 14 March 1978.
88 Decision No. 6902, 17 October 1978.
89 Submission No. 1954, 13 February 1978.
90 See Chapter 8.
91 Document 3, Telephone book.
92 See Chapter 9.
93 See Chapter 22.
94 Document 5, Telephone book.
95 Decision No. 5124, 17 April 1978.
96 See Chapter 37.
97 See Chapter 23.
98 Decision No. 5123, 17 April 1978.
99 (1969) 119 CLR 177.
100 See Chapter 9.
101 Document 6, Telephone book.
102 Decision No. 5760 (Ad Hoc), 9 June 1978.
103 See Chapter 22.
104 See Chapter 32.
105 See Chapter 24.
106 Decision No. 6720 (Ad Hoc), 14 September 1978.
107 Decision No. 6737, 19 September 1978.
108 Author's emphasis.
109 Paper No. 713.
110 See Chapter 27 in particular.
111 See Chapter 30 for the account of government decisions to make a larger attack on the carry forward of avoidance‑created losses.
112 Grant v. Deputy Commissioner of Taxation (1986) 66 ALR 690.
113 OECD DAF/CFA/WP8/78.26.
114 See Chapter 60.
115 See Chapter 28.
116 Submission No. 3230, 8 June 1979; Decision No. 8958, 12 June 1979.
117 See Chapter 30.
118 (1988) ATC 4582.
119 See Chapter 24.
120 See Chapter 26.
121 See Chapter 42.
122 See Chapter 35.
123 FCT v. Everrett (1980) ATC 4279.
124 C Ryan, 'How the charity tax dodge really worked', Australian Financial Review, Sydney, 27 June 1980.
125 Submission No. 295, 25 July 1952.
126 Submission No. 348, 7 October 1952.
127 Daily Telegraph, Sydney, 1 July 1958.
128 Submission No. 1299, 30 July 1958.
129 JAL Gunn, 'Section 260 - A truncheon but not yet a blackjack', Australian Financial Review, Sydney, 17 July 1958.
130 Submission No. 1550, 1977.
131 Decision No. 9351 (M), 17 July 1979.
132 (1979) 1 WLR 974.
133 See Chapter 60.
134 (1976) 140 CLR 247.
135 See Chapter 29.
136 Full report, 31 January 1975, Taxation Review Committee Australia (Asprey Report), AGPS, Canberra, paragraph 17.88.
137 Decision No. 5315 (Ad Hoc), 10 May 1978.
138 See Chapter 35.
139 See Chapter 8.
140 This state of play was reflected in an answer by Howard to a question on notice from Ralph Jacobi on 22 May 1980.
141 (1980) 143 CLR 646.
142 See Chapter 54.
143 Submission No. 2598, 5 September 1978.
144 See Chapter 42.
145 M Woodgate, 'Tax schemes get reassessed', Australian Financial Review, Sydney, 4 June 1982.
146 (1983) ATC 4124.
147 (1985) 59 ALR 265.
148 See Chapter 13.
149 (1984) ATC 4205.
150 (1984) ATC 4211.
151 (1989) ATC 631.
152 (1991) ATC 4976.
153 F Costigan QC, Royal Commission on the activities of the Federated Ship Painters and Dockers Union Interim Report No. 4, Volume 1, AGPS Canberra, 1982, p. 26.
154 Here, Costigan would have meant the stripping company, not the stripped company.
155 F Costigan, p. 71.
156 (1977) 140 CLR 314.
157 See Chapter 48.
158 See Chapter 43.
159 See Chapter 44.
160 See Chapter 54.
161 See Chapter 45.
162 See Chapter 46.
163 See Chapter 48.
164 See Chapters 52-53.
165 See Chapter 39, p. 192.
166 See Chapter 48, p. 261.
167 Covered more fully in Chapter 44.
168 See Chapter 48.
169 See Chapter 44.
170 (1978) ATC 4388.
171 Commonwealth of Aust v. Duncan (1981) ATC 4228.
172 Fermoyle Pty Ltd; Commonwealth v. Brown (1962) FLR 413.
173 Document 2, Telephone book.
174 See Chapter 41.
175 Document 3, Telephone book.
176 See Chapter 11.
177 Document 5, Telephone book.
178 Document 6, Telephone book.
179 Document 7, Telephone book.
180 Decision No. 6609 (Ad Hoc), 23 August 1978.
181 See Chapter 41, p. 205.
182 The small business letter, Australian Edition, Number 40, 1979.
183 Submission No 9393, 27 July 1979.
184 Document 49, Telephone book.
185 Decision 10228, 8 November 1979.
186 Document 51, Telephone book.
187 Decision 10320, 21 November 1979.
188 C Ryan, '"Harbour bottom" tax fraud under investigation', Australian Financial Review, Sydney, 11 January 1980.
189 Document 58, Telephone book.
190 Document 63, Telephone book.
191 Document 70, Telephone book.
192 See Chapter 38.
193 C Ryan, 'Tax Crimes Bill stuns avoidance industry', Australian Financial Review, Sydney, 28 November 1980, pp.1,6.
194 G Hywood, 'Rush to beat Howard's net', Australian Financial Review, Sydney, 3 December 1980.
195 See Chapter 46.
196 J Short, 'How Howard's tax avoidance blunder buss backfired', The Sydney Morning Herald, Sydney, 7 June 1982.
197 'Business, industry figures named', The Sydney Morning Herald, Sydney, 28 May 1982.
198 'The tax jungle', The Sydney Morning Herald, Sydney, 29 May 1982.
199 'Tax avoidance', The Sydney Morning Herald, Sydney, 3 June 1982.
200 P Bowers, 'One tax body up, but there's a cemetery down there', The Sydney Morning Herald, Sydney, 5 June 1982.
201 M Grattan, 'Threat to tax dodgers', The Age, Melbourne, 3 June 1982.
202 G Sturgess, 'Bar clamp likely on advice to avoiders', The Age, Melbourne, 3 June 1982.
203 A Summers, 'Howard faces test of his anti-avoidance zeal', Australian Financial Review, 4 June 1982.
204 S Foley, 'Tax officers accuse Howard of whitewash', The Age, Melbourne, 2 June 1982.
205 See Chapter 48.
206 See Chapter 56.
207 See Chapter 41.
208 Author's emphasis.
209 AJ Forbes, Federal President Liberal Party of Australia, Tax Evasion and Retrospectivity, 31 August 1982.
210 See Chapter 47.
211 See Chapter 56.
212 See Chapter 41.
213 See Chapter 48.
214 See Chapter 10.
215 A Summers, 'Extraordinary Government History of Inaction, Australian Financial Review, 23 September, 1982, p.1.
216 'Tax chief sought action', The Age, Melbourne, 23 September, 1982.
217 R. Schneider, 'Moves on tax cheats blocked by ministers', The Australian, 23 September, 1982, p. 1.
218 P. Kelly, 'Govt inaction on tax lurks dates to 1977', The Sydney Morning Herald, Sydney, 23 September, 1982, p. 1.
219 See Chapter 11.
220 See Chapter 45.
221 'A lesser evil', The West Australian, 27 July 1982.
222 'Tax lurks sunk', Daily Telegraph, 27 July 1982.
223 'Taxing the avoiders', The Australian, 26 July 1982.
224 'A veil lifted', The Sydney Morning Herald, Sydney, 27 July 1982
225 'Howard hits the dodgers', The Age, Melbourne, 27 July 1982.
226 'Catching the Tax Cheats', The Herald, Melbourne, 26 July 1982
227 'So they were not innocent', Australian Financial Review, 26 August 1982.
228 See Chapter 41, p. 203.
229 A Summers, 'Tax scandal: PM's opponents talk of a Watergate', Australian Financial Review, 4 June 1982 p. 3.
230 See Chapter 48.
231 Master of the Rolls, head of the British Court of Appeal.
232 (1942) 1 KB 389 at p. 397.
233 See Chapter 48.
234 (1984) 158 CLR 622.
235 RV Gyles, QC, Special Prosecutor, Final Report to the Attorney-General for the Period 1 July 1984 to 21 September 1984, pp. 4-8.
236 Ibid.
237 Director of Public Prosecutions, Annual report 1991-92.
238 See Chapter 6.
239 See Chapter 8.
240 The Chartered Accountant in Australia, December 1977, p.17.
241 BH Pascoe, 'The Tax Avoidance Merry‑Go‑Round', The Chartered Accountant in Australia, December 1978, p. 10.
242 L Gorr, 'Tax schemes: How to minimize fraud risk', Chartrac No. 25, November/December 1978, p. 7.
243 See Chapter 10, p. 55.
244 Document 85, Telephone book.
245 (1987) 76 ALR 586.
246 See Chapter 27.
247 See Chapter 30.
248 See Chapter 15.
249 See Chapter 20.
250 See Chapter 47, p. 255.
251 Miscellaneous Professional Statement, APS 6 Statement of Taxation Standards, Institute of Chartered Accountants in Australia and the Australian Society of Certified Practising Accountants, June 1982.
252 Cooper, Krever & Vann, Income Taxation Commentary & Materials, Second Edition, The Law Book Company Ltd, Sydney, 1993, p. 24.
253 This was the operative date for Part IVA.
254 M Maiden, 'National defence against tax avoidance schemes', Australian Financial Review, 31 May 1982.
255 (1983) 153 CLR 1.
256 See Chapter 49, p. 274.
257 Document 3, Telephone book.
258 (1976) 6 ATR 690.
259 Author's emphasis.
260 See Chapter 11.
261 See Chapter 57.
262 See Chapter 15.
263 See Chapter 8.
264 Annual report 1979-80, p. 32.
265 See Chapter 24.
266 (1981) 58 FLR 191.
267 See Chapter 37, p. 176.
268 (1983) ATC 4437.
269 (1984) ATC 4167.
270 Annual report 1984-85, p. 66.
271 Annual report 1986-87, p. 15.
272 Annual report 1986-87, p. 96.
273 Callovers here means the opportunity to discuss resolution.
274 (1991) ATC 4950.
275 See Chapter 59.
276 Annual report 1987-88, p. 98.
277 (1981) 147 CLR 297.
278 See p. xi.
279 (1980) ATC 4438.
280 (1981) ATC 4100.
281 (1981) ATC 4524.
282 [1981] 1 All ER 865. See Chapter 60, p. 374.
283 (1981) ATC 4661.
284 See Chapter 24 for further details.
285 (1981) ATC 4550.
286 (1982) ATC 4332.
287 Annual report 1981-82, p. 46.
288 (1982) ATC 4112.
289 G Lehmann, 'Tax: Can the ghost of Section 260 ride again?' The National Times, Sydney, 6-12 June 1982, p. 41.
290 See Chapter 47.
291 Author's emphasis.
292 Annual report 1983-84, p. 22.
293 (1985) ATC 4765.
294 (1986) ATC 4906.
295 (1987) ATC 4988.
296 (1988) ATC 4221.
297 (1977) ATC 4076.
298 Annual report 1987-88, p. 71.
299 Ibid, p. 72.
300 Ibid, p. 71.
301 See Chapter 47, p. 254.
302 See Chapter 35.
303 See Chapter 27.
304 See Chapter 52.
305 The particular aspect of further retrospective legislation concerning strips of company profits is covered in Chapter 53.
306 See Chapter 54, p. 321.
307 See Chapter 57.
308 See Deputy Federal Commissioner of Taxation v. Crowl, (1987) ATC 4001 for one case where these issues were litigated.
309 Annual report 1983-84, p. 19.
310 Case U201 (1987) ATC 1122.
311 Case U160 (1988) ATC 1058.
312 Evans v. FC of T (1988) ATC 4771; Stamp v. FC of T (1988) ATC 4803
313 (1987) ATC 4244.
314 (1981) ATC 4228.
315 (1982) 13 ATR 1.
316 See Chapter 15.
317 See Chapter 22.
318 See Chapter 47.
319 See Chapter 47, p. 253.
320 Vereker & Ors v. Rodda & Anor (1987) ATC 4244; O'Donovan v. Vereker & Ors (1987) ATC 4924.
321 RV Forsyth (1990) 20 ATR 1818.
322 Gasbourne Pty Ltd and Others [1984] VR 801.
323 Ibid, at 861.
324 See Chapter 47, p. 255.
325 UNSW Law Journal, Volume 10, 1987, p. 67.
326 Ibid, p. 80.
327 (1987) ATC 4010.
328 (1985) 17 ATR 290.
329 (1998) ATC 4241.
330 See Chapter 26, p. 111.
331 See Howard's statement of 15 August, this chapter, pp. 339-340.
332 J Howard, Speech to Congress of Institute of Chartered Accountants, 1982.
333 Seminar held in Sydney, 20 September 1983.
334 Annual report 1986-87, p.20.
335 See Chapter 3.
336 See Chapter 36.
337 FK Richards, 'Superannuation - Some Benefits to be Fully Taxable,' Taxation in Australia, March 1984, p. 818.
338 V Lawson, 'The Super new tax dodge', Australian Financial Review, 26 April 1978, p. 1.
339 See Keating's economic statement of 19 May 1983.
340 (1982) 13 ATR 592.
341 Bayton Cleaning Co Pty Ltd v. FCT (1990) 21 ATR 1206.
342 Raymor Contractors Pty Ltd v. FCT (1991) 21 ATR 1410.
343 (1989) 166 CLR 417.
344 (1986) ATC 4647.
345 (1987) ATC 4713.
346 Emphasis added by Justice Beaumont.
347 (1989) ATC 4101.
348 (1989) ATC 4102.
349 See Chapter 60, p. 374.
350 See Chapter 15.
351 J Barnett, Sunday Times, London, 16 April 1978.
352 M Gillard, In the name of Charity: the Rossminster affair, Chatto & Windus, London, 1987.
353 Ibid, p. 59.
354 Ibid, p. 72.
355 Department of the Treasury News, 18 January 1980.
356 Ramsay v IRC and Eilbeck v Rawling [1981] 1 All ER 865.
357 J Tiley, 'Managing tax avoidance: recent UK experience', Annual Tax Lecture, Melbourne Law School, 2007, viewed 16 September 2009, www.tax.law.unimelb.edu.au/go/news-and-events/annual-tax-lecture/index.cfm.
358 See p. x.
359 See Chapter 60, p. 370.
360 See p. xi.
361 [1984] 1 All ER 530.
362 [1987] 3 All ER 27.
363 [1993] 2 All ER 49.
364 [1979] 3 All ER 775.
365 (1982) 98 LQR 209.
366 See Chapter 35, p. 160.
367 (1981) ATC 4524.
368 See Chapter 51, p. 297.
369 (1984) 84 ATC 4718.
370 (1989) 166 CLR 417.
371 See Chapter 38.
372 (1992) ATC 4704.
373 (1994) 181 CLR 359.
374 (1996) 186 CLR 404.
375 See p. x.
376 [2001] HCA 32.
377 [1943] 1 All ER 265 at 266.
378 M Gillard, p. 60.
379 See Chapters 6, 10, 11.
380 See Chapter 11, p. 57.
381 See Table 5, p. 176.
382 See Chapter 53.
383 NE Challoner was the Commissioner's counsel in Slutzkin's case.
384 NE Challoner, Taxation in Australia, May 1978, pp. 668-669.
385 See Chapter 41, p. 202; Chapter 46.
386 Set out in Chapter 42.
387 See Chapter 38.
388 See Chapter 60.
389 See Chapter 27.
390 See Chapter 53, p. 314; Chapter 54, p. 329.
391 M Gillard, p. 260.
392 CA Sweeney QC, The Australian Law Journal, Volume 62, June 1988, p. 470.
Last Modified: Wednesday, 16 June 2010