Commissioner of Taxation v Linter Textiles Australia Ltd (In Liquidation)

Income tax – Allowable deductions - Loss carry forward provisions - Losses incurred by taxpayer company in preceding years - Requirement of continuity during year of income of beneficial ownership in shares in the taxpayer company that carry between them various rights - Winding-up order made in respect of parent of taxpayer company and subsequently in respect of taxpayer company - Liquidators appointed in each case - Whether shares in the taxpayer company still carried between them the rights required to be attached to those shares.

Income tax – Allowable deductions - Loss carry forward provisions - Losses incurred by taxpayer company in preceding years - Requirement of continuity during year of income of beneficial ownership in shares in the taxpayer company that carry between them various rights - Winding-up order made in respect of parent of taxpayer company and subsequently in respect of taxpayer company - Liquidators appointed in each case - Whether, subsequent to winding up of parent company, the shares held by parent company in the taxpayer company were not "beneficially owned" by the parent company.

Income tax – Allowable deductions - Loss carry forward provisions - Losses incurred by taxpayer company in preceding years - Discretion in Commissioner of Taxation to apply additional requirements for carrying forward previous tax losses - Requirement that voting power in taxpayer company be controlled, or capable of being controlled, by an individual or two or more persons not being companies - Ultimate holding company of parent of taxpayer company was trustee of two trusts administered for benefit of a family - Whether family still controlled voting power in taxpayer company.

Statutes – Construction - Loss carry forward provisions in income tax legislation - Meaning of requirement that shares held in taxpayer company be "beneficially owned" by parent company - Effect of intervening winding-up orders and appointment of liquidators in each company - Meaning and purpose of the requirement of beneficial ownership in this context - Relevance and utility of analysis by reference to the law of trusts and equitable ownership of property.

Corporations – Involuntary winding up - Whether company in liquidation divested of beneficial ownership of assets - Whether liquidator trustee for the benefit of creditors.

Trusts – Whether liquidator trustee for the benefit of creditors.