In Shoppe Pty Ltd v Smith

In Shoppe Pty Ltd v Smith

The deeds expressly required payments under cl 5(b)(iii) and cl 5(b)(iv) on specified dates, and the terms "taxable profits" and "taxable losses" referred to profits and losses actually derived and made and objectively determinable, not amounts finally assessed or deductions finally allowed by the Commissioner. The pending Board of Review proceedings and the Commissioner's disallowance did not prevent the sums from becoming payable.

Jurisdiction
Australia
Procedural Posture
Civil Appeal Concerning Construction of Deeds / Appeal to the High Court of Australia From a Judgment of the Court of Appeal of New South Wales
Outcome
Appeal dismissed with costs. Appellant to pay costs of application for leave to appeal.
Legal Topics
['construction of Deeds' 'payment Obligations' 'taxable Losses' 'carry Forward Losses Under Income Tax Legislation']
['contract Law' 'taxation Law'] ['construction of Deeds' 'payment Obligations' 'taxable Losses' 'carry Forward Losses Under Income Tax Legislation']

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Procedural Posture

Civil Appeal Concerning Construction of Deeds / Appeal to the High Court of Australia From a Judgment of the Court of Appeal of New South Wales

Legal Issues

  1. 1 ["Whether amounts under cl 5(b)(iii) and cl 5(b)(iv) had become payable despite the pending Board of Review process concerning the Commissioner's disallowance of deductions." 'Whether "taxable profits" and "taxable losses" in the deeds meant profits and losses objectively derived and made, or profits and losses finally assessed or allowed for income tax purposes.' "Whether payment under cl 5(b)(iv) depended on reversal of the Commissioner's disallowance of deductions."]

Ratio Decidendi

The deeds expressly required payments under cl 5(b)(iii) and cl 5(b)(iv) on specified dates, and the terms "taxable profits" and "taxable losses" referred to profits and losses actually derived and made and objectively determinable, not amounts finally assessed or deductions finally allowed by the Commissioner. The pending Board of Review proceedings and the Commissioner's disallowance did not prevent the sums from becoming payable.

Court Disposition

Appeal dismissed with costs. Appellant to pay costs of application for leave to appeal.

Orders

  • ['Appeal dismissed with costs.' 'Appellant to pay costs of application for leave to appeal.']