The Weekly Law Reports
[1958] 3 WLR 195
[PRIVY COUNCIL.]
LAURI JOSEPH NEWTON AND OTHERS APPELLANTS; AND COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA RESPONDENT.
ON APPEAL FROM THE HIGH COURT OF AUSTRALIA.
1958 July 7.
VISCOUNT SIMONDS, LORD TUCKER, LORD KEITH OF AVONHOLM, LORD SOMERVELL OF HARROW, and LORD DENNING.
Australia
— Revenue
— Income tax
— Avoidance
— Private company
— Special dividend
— Share transactions
— “Arrangement” resulting 196in increase of capital of company and capital payment to shareholders
— Purpose and effect of avoiding liability for tax
— “Absolutely void” as against commissioner
— Penalty
— “Arrangement”
— “Purpose”
— “Effect”
— “Avoid”
—
Income Tax and Social Services Contribution Assessment Act, 1936–1951 (Commonwealth), ss. 226 (2), 260.
Revenue
— Tax avoidance scheme.