Gregrhon Investments Pty. Limited & Ors v. Federal Commissioner of Taxation

Judges:
Mason CJ
Wilson J
Gaudron J

Court:
Full High Court

Judgment date: Judgment handed down 18 March 1988.

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Mason C.J. (Wilson and Gaudron JJ. agreeing) [Following argument the Court delivered its decision] The critical question sought to be raised by the proposed appeals relates to the ascertainment or identification of the arrangement to which the taxpayers were parties. The answer to that question depends on the particular facts of this case. One of the material facts found by the Full Court of the Federal Court was that there was calculated abstention on the part of the taxpayers from making an inquiry as to the way in which the transaction they were entering was to be carried through to completion.

Counsel for the applicants rightly concedes that in order to succeed in the proposed appeals the applicants would need to persuade this Court to overrule that finding of fact. An answer to the question we have identified would not, in our view, result in any elucidation of general principle, the present case being distinguishable from
Slutzkin's case [77 ATC 4076], as the Full Court of the Federal Court demonstrated on the facts which it found.

In this respect, we should mention one specific matter, namely, that the taxpayers did participate in the disposition of Detail's assets to the Lockwing company which was a vehicle of the purchasers. The case is, therefore, not a suitable vehicle for the grant of special leave and we would refuse the application.

[Discussion on costs ensued.]