IN THE FEDERAL COURT OF AUSTRALIA)

                                  )

SOUTH AUSTRALIA DISTRICT REGISTRY)    No. SG 54 of 1994

                                  )

GENERAL DIVISION                  )

                                  BETWEEN:

                                  F W HUGHES PTY LTD

                                                   Applicant

                                  - and -

                                  THE COMMISSIONER OF TAXATION

                                                  Respondent

                      MINUTES OF ORDER

CORAM:    Branson J.

PLACE:    Adelaide

DATE:     28 June 1995

THE COURT ORDERS THAT:

1.   The application be dismissed.

2.   The applicant pay the respondent's costs of the application.

Note:     Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules

IN THE FEDERAL COURT OF AUSTRALIA)

                                  )

SOUTH AUSTRALIA DISTRICT REGISTRY)    No. SG 54 of 1994

                                  )

GENERAL DIVISION                  )

                                  BETWEEN:

                                  F W HUGHES PTY LTD

                                                   Applicant

                                  - and -

                                  THE COMMISSIONER OF TAXATION

                                                  Respondent

                    REASONS FOR JUDGMENT

CORAM:    Branson J.

PLACE:    Adelaide

DATE:     28 June 1995

This matter was argued together with Woolcombers (WA) Pty Ltd v The Commissioner of Taxation.  It is agreed that the result of one case determines the result of the other.

I have today delivered judgment in the Woolcombers (WA) Pty Ltd Case dismissing the applicant's appeal.  The applicant's appeal in this case must similarly be dismissed with costs.

                             I certify that this page is a true copy of the Reasons for Judgment of Justice Branson.

                             Associate:

                             Dated:

Counsel for the Applicant    :    Mr M L Robertson QC

                                  with him Mr M Manetta

Solicitors for the Applicant:    Minter Ellison Baker O'Loughlin

Counsel for the Respondent   :    Mr A H Slater QC

                                  with him Ms A MacDonald

Solicitors for the Respondent:    Australian Government Solicitor

Hearing Date                 :    10 March 1995