A & S Ruffy Pty Ltd v Federal Commissioner of Taxation [1958] HCA 18; (1958) 98 CLR 637 (30 April 1958)

HIGH COURT OF AUSTRALIA

A. & S. RUFFY PTY. LTD. V. FEDERAL COMMISSIONER OF TAXATION [1958] HCA 18; (1958) 98 CLR 637

Income Tax (Cth.)

High Court of Australia
Dixon C.J.(1), Williams(1), Webb(1), Fullagar(2) and Taylor(3) JJ.

CATCHWORDS

Income Tax (Cth.) - Allowable deduction - Income of co-operative company distr ibuted among shareholders as dividends - Co-operative company defined as "Company the rules of &which limit the number of shares &which may be held by" "any one shareholder" and "is established for the purpose of carrying on any business having as its primary object . . ." - Limitation on shareholding - What constitutes - Primary object - Whether to be considered only by reference to memorandum of association - Necessity for purpose of business to supply shareholders with services etc. - Whether necessary for class of shareholders for whom services rendered to be co-extensive or of same class of shareholder as class among &which distribution of dividend made - Income Tax and Social Services Contribution Assessment Act 1936-1950 (No. 27 of 1936 - No. 48 of 1950), ss. 117-120.

HEARING

Melbourne, 1958, March 5, 6;
Sydney, 1958, April 30. 30:4:1958

DECISION

Cotman v. Brougham (1918) AC 514
H. A. Stephenson & Son Ltd.(In Liq.) v. Gillanders Arbuthnot & Co. [1931] HCA 47; (1931) 45 CLR 476
Shelley v. Federal Commissioner of Taxation [1929] HCA 31; (1929) 43 CLR 208