Berry v Commissioner of Taxation [1953] HCA 70

Berry v Commissioner of Taxation [1953] HCA 70

The £1,500 received by the appellant as consideration for his restrictive covenant was, in the circumstances, 'consideration in connection with' the goodwill of the business as it existed upon transfer, and such goodwill was connected with the land. The amount was properly included in assessable income as a premium under ss. 83 and 84 of the Income Tax Assessment Act 1936-1946.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Judgment on Appeal From Board of Review
Outcome
Appeal dismissed with costs.
Legal Topics
['income Tax' 'assessment of Premiums' 'goodwill' 'restraint of Trade' 'premium Definition']
['taxation Law'] ['income Tax' 'assessment of Premiums' 'goodwill' 'restraint of Trade' 'premium Definition']

Case Brief

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Procedural Posture

Appeal / High Court Judgment on Appeal From Board of Review

Legal Issues

  1. 1 ["Whether the sum of £1,500 received by the appellant as consideration for a covenant against competition was consideration 'for or in connection with any goodwill attached to or connected with land' within the meaning of ss. 83 and 84 of the Income Tax Assessment Act 1936-1946."]

Ratio Decidendi

The £1,500 received by the appellant as consideration for his restrictive covenant was, in the circumstances, 'consideration in connection with' the goodwill of the business as it existed upon transfer, and such goodwill was connected with the land. The amount was properly included in assessable income as a premium under ss. 83 and 84 of the Income Tax Assessment Act 1936-1946.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']