Commissioner of Taxation v Whitehouse [1961] HCA 10

High Court of Australia Dixon C.J. Fullagar and Kitto JJ. Commissioner of Taxation v Whitehouse [1961] HCA 10

ORDER Order that question 3 in case stated be answered No, and that question 4 in case stated be answered Yes. Questions 1, 2, 5 and 6 unnecessary to answer.

Cur. adv. vult.

The Court delivered the following written judgment:—

1961, Mar. 10 Dixon C.J., Fullagar and Kitto JJ.

This is a case stated by the Chief Justice in an appeal by the Commissioner of Taxation under s. 196 of the Income Tax and Social Services Contribution Assessment Act 1936-1956 (Cth) against a decision of a Board of Review. The question is as to the amount which the taxpayer is entitled to deduct from his assessable income under s. 82B of the Act.

Section 82B is contained in Sub-div. B of Div. 3 of Pt. III of the Act, which is headed " Concessional Deductions ". So far as material, it reads:

(1) Where, during the year of income, a taxpayer contributes to the maintenance of a person (in this section referred to as a dependant) specified in the second column of the table set out in the next succeeding sub-section, and that person is a resident, the taxpayer shall be entitled to a deduction in accordance with this section.

(2) Subject to this section, the amount of the deduction allowable under this section in respect of a dependant is the relevant amount specified in the third column of the following table:—

First Column Second Column Third Column Class Dependant Amount of Deduction 1 Spouse of the taxpayer £130 2 Daughter-housekeeper £130 3 Child less than sixteen years of age In respect of one such child—£78. In respect of each other such child—£52 4 Student child £78 5 Invalid relative £78

(3) The amount of a deduction otherwise allowable under the foregoing provisions of this section in respect of a dependant shall be reduced (a) where the dependant is a student child—by the value of any assistance (consisting of money, accommodation or sustenance) provided by the Commonwealth or a State, during the year of income, in connexion with the education of the child.