DYMOCK'S BOOK ARCADE V. FEDERAL COMMISSIONER OF TAXATION FO THE COMMONWEALTH OF AUSTRALIA 39/1936 40/1936

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IN THE HIGH COURT OF AUSTRALIA...

——~-DY MOCKS... BOOK. ARCADE _

PRDERAL COMMISSIONER or TAXATION of the COMMONWEALTH of AUSTRALIA..

REASONS FOR JUDGMENT.

Judgment delivered at...

40 0 16 on... Praday.18bh June.L v

to 34 4

( Mr Justice McTiernan )

. J, Cinean, Government Prieter, Melbourne. es

DYMOCK 'S BOOK ARCADE V FEDERAL COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA.

JUDGMENT. McTIERNAN J.

The taxpayer was assessed for the purposes of Federal Land Tax as the owner at 30th June in the years 1933, 1934, 1935, of two parcels of land in the City of Sydney. The Land Tax Assessment Act 1910-19230 applies to the first of these assessments and the Land Tax Assessment Act 1910-1934 to each of the others. The value at which the Commissioner of Land Tax included parcel 1 of the taxpayer's land in each assessment was £ 70600, The taxpayer had returned the unimproved value of parcel 1 at £ 24750, Any objection was lodged against each assessment on the ground that the unimproved value of parcel 1 did not exceed £ 24750. The Commissioner having disallowed the objections they were, at the taxpayer's request, forwarded to the Court to be dealt with as appeals. The three appeals were heard together, The ground of appeal in each case ia that the Commissioner's valuation is excessive.

The difference between the taxpayer's valuation as shown by its returns and repeated in its objections, and the Commissioner's valuation as shown by the assessment notices is £ 45850, At the hearing of the app- eals the highest valuation given by any of the taxpayer's witnesses was £ 37852, and between that sum and the Commissioner's valuation the diff- erence is £ 32748, It is remarkable that the opinions of witnesses who were called to give evidence as experts in land values shojid differ so widely.

The subject land is the site of the Sydney Arcade and has an area of roughly 14600 sq. feet. The land has a frontage of 11" 11}' ana 11" 93' respectively to George and King Streets. The frontage in George St. is on the Eastern side and is between Market and King Streets, The frontage in King St. is on the Southern side and is between George and Pitt Streets, The configuration and dimensiéns of the land are shown on Exhibit 1. The shape of the land is roughly that of an L, the top of which is the George St. entrance, and the end of the horizontal bar of the letter marks the King St. entrance. The major part of the land