Stocks and Holdings (Constructors) Pty. Limited v. Federal Commissioner of Taxation.

Members: Barwick CJ

Menzies J
Stephen J
Mason J

Tribunal:
High Court (Full Court)

Decision date: Judgment handed down 14 May 1973.

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Menzies J.: I have read the judgment prepared by Stephen J. and I agree with it.

The power conferred upon the Commissioner by sec. 103A(5) of the Income Tax Assessment Act is to protect a company from the operation of the provisions of the Act imposing additional tax upon undistributed profits and its use for a different purpose was not, in my opinion, warranted.

The power is conditioned by the Commissioner's opinion that ``...it is reasonable that the company should be treated as a public company for the purpose of sub-sec. (1) of this section'' and sub-sec. (1) is introduced by the words ``For the purposes of this Division...''. The Commissioner treated the taxpayer as a public company for a purpose outside the purposes of Div. 7.

I agree with the order which Stephen J. proposes.