Forwood Down & Co Ltd v. Commissioner of Taxation (Western Australia)

53 CLR 403

(Judgment by: Evatt J)

Forwood Down & Co Ltd v. Commissioner of Taxation (Western Australia)

Court:
HIGH COURT OF AUSTRALIA

Judges: Rich J
Starke J
Dixon J

Evatt J
McTiernan J

Subject References:
Taxation and revenue
Dividend duties
Sale of lease and machinery
Profit from sale taken into profit and loss account

Legislative References:
Dividend Duties Act 1902 (WA) No 32 - Section 5; Section 6

Judgment date: 26 August 1935

PERTH


Judgment by:
Evatt J

When analyzed, the case for the company rests mainly upon the supposed antithesis, in describing its purpose in acquiring the mining lease, between the purpose of storing machinery on the lease and the purpose of reselling the lease. The antithesis is a false one because, in point of fact, the company acquired the lease for both purposes, not only that of storing machinery pending the sale of the latter, but also that of reselling the lease when a place of storage was no longer required. In all the circumstances, the transaction of buying and selling the lease was sufficiently related to the company's business to bring the profit into tax in accordance with the principles enunciated in W. Thomas & Co v Commissioner of Taxation (W.A.) [F3] .

The appeal should be dismissed.