Case A43
Judges: JL Burke ChRC Smith M
RE O'Neill M
Court:
No. 1 Board of Review
R.C. Smith Q.C. (Member): The facts in this reference are set out in the reasons of my colleague, Mr. O'Neill, and I do not repeat them. He has fully discussed the relevant cases and I am in general agreement with the conclusion at which he has arrived.
2. I would add that the decision of
Taylor
J. in
Quarries Ltd.
v.
Federal Commissioner of Taxation
(1961) 106 C.L.R. 310
where his Honour held that certain portable sleeping units constituted ``plant or articles'' within the meaning of sec. 54 of the Assessment Act (the relevant section here) and that they were used for the purpose of producing assessable income is a strong authority in favour of the present taxpayer's claim.
3. In that case it was put in argument on behalf of the Commissioner that the sleeping units were not plant because they had no place in the productive process itself but constituted part of the setting in which the business was carried on. This submission was rejected by his Honour on the facts before him.
4. At p. 312 of his judgment, when dealing with the meaning of ``plant'', his Honour said ``... it is obvious that some reference must be made to the nature of the taxpayer's business and the purpose which the so-called sleeping units served.'' Later, at p. 317, when discussing the use to which the sleeping units were put, he said - ``The critical question is concerned with the purpose for which they were used by the taxpayer.''
5. Just as the sleeping units in that case were used on the site of the operations carried on by Quarries Ltd., so here the various sheds were situated on the several sites where the taxpayer was carrying out its contracts and were essential to the performance of such contracts. From their nature their operation may appear to have been a passive one but they were much more than just ``setting'' in which the operations were carried on. They did, indeed, play an important part in the productive processes of the taxpayer on the respective sites on which they were situated, since without them it would not have been practicable for the taxpayer to carry out the operations necessary for the performance of its contracts.
6. I would allow the taxpayer's claim.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
