Millard v Commissioner of Taxation (Cth) [1962] HCA 28

Millard v Commissioner of Taxation (Cth) [1962] HCA 28

Even if the agreement between the appellant and R. F. Millard Pty. Limited was valid and effective according to its tenor, its whole purpose and effect was to split the appellant's income to minimise tax. The disputed amount was received by the appellant, was the return from his own bookmaking activities, and the...

Source-derived case information.

Jurisdiction
Australia
Procedural Posture
Income Tax Appeal / Appeal Dismissed
Outcome
Appeal dismissed with costs.
Legal Topics
['income Tax Assessment' 'tax Avoidance' 'income Splitting' 'section 260' 'bookmaking Income']
['taxation Law'] ['income Tax Assessment' 'tax Avoidance' 'income Splitting' 'section 260' 'bookmaking Income']

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Income Tax Appeal / Appeal Dismissed

Legal Issues

  1. 1 ['Whether the amount treated by the Commissioner as income disclosed in accounts submitted by R. F. Millard Pty. Limited was income of the appellant or of the company.' 'Whether the agreement between the appellant and R. F. Millard Pty. Limited was one to which s. 260 of the Income Tax and Social Services Contribution Assessment Act Cth applied.' "Whether the agreement was ineffective because it was void or illegal under bookmaking legislation, beyond the company's powers, or a sham."]

Ratio Decidendi

Even if the agreement between the appellant and R. F. Millard Pty. Limited was valid and effective according to its tenor, its whole purpose and effect was to split the appellant's income to minimise tax. The disputed amount was received by the appellant, was the return from his own bookmaking activities, and the agreement's provision for the subsequent disposition of the profit was merely for the purpose of avoiding taxation. The agreement was therefore within s. 260 and the assessment stood.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']