Commissioner of Taxation v Carter

HIGH COURT OF AUSTRALIAGAGELER, GORDON, EDELMAN, STEWARD AND GLEESON JJCOMMISSIONER OF TAXATION  APPELLANTANDNATALIE CARTER & ORS  RESPONDENTSCommissioner of Taxation v Carter[2022] HCA 10Date of Hearing: 9 November 2021Date of Judgment: 6 April 2022S62/2021ORDER1.Appeal allowed.2.Set aside orders 1 and 2 made by the Full Court of the Federal Court of Australia on 10 September 2020 and, in their place, order that the appeal be dismissed.On appeal from the Federal Court of AustraliaRepresentationM J O'Meara SC with D P Hume for the appellant (instructed by Australian Government Solicitor)B W Walker SC with J L Evans QC and D R Lewis for the respondents (instructed by O'Loughlin Westhoff)Notice:  This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.CATCHWORDSCommissioner of Taxation v CarterIncome Tax (Cth) – Trusts – Where s 97(1) of Income Tax Assessment Act 1936 (Cth) provides that where beneficiary of trust estate not under any legal disability is presently entitled to share of income of trust estate, assessable income of beneficiary shall include so much of that share of net income of trust estate as is attributable to period when beneficiary was resident – Where trust deed provided that, if trustee made no effective determination to pay, apply, set aside or accumulate any part of trust income in given accounting period, income held on trust for specified beneficiaries – Where trustee failed to pay, apply, set aside or accumulate income in income year – Where share of trust income in...