Church of the New Faith v Commissioner for Pay-roll Tax (Vic) [1983] HCA 40

High Court of Australia Mason A.C.J. Murphy, Wilson, Brennan and Deane JJ. Church of the New Faith v Commissioner for Pay-roll Tax (Vic) [1983] HCA 40

ORDER Special leave to appeal granted. Appeal allowed with costs. Judgment of the Full Court of the Supreme Court of Victoria set aside and in lieu thereof order:

(i) that the appeal to that Court from the judgment of Crockett J. be allowed with costs;

(ii) that the judgment of Crockett J. be set aside and in lieu thereof order —

(a) that the appeal against the assessment of the appellant to pay-roll tax be allowed with costs;

(b) that the applicant's assessment to pay-roll tax be reduced to nil.

Cur. adv. vult.

The following written judgments were delivered:—

1983, Oct. 27 Mason A.C.J. and Brennan J.

Pursuant to the provisions of the Associations Incorporation Act 1956-1965 S.A., The Church of the New Faith Incorporated was incorporated under that name on 31 January 1969. The corporation was registered in Victoria pursuant to the Companies Act 1961 Vict. as a foreign company. Subsequently, a change in name to "The Church of Scientology Incorporated" was registered in South Australia. Though no change of name has been registered in Victoria, the corporation uses and is apparently known by its new name in that State.

The corporation was assessed to pay-roll tax under the Pay-roll Tax Act 1971 Vict.. The wages assessed as liable to pay-roll tax under that Act were paid or payable during the period 1 July 1975 to 30 June 1977. The corporation objected to the assessment upon the ground that the wages were exempt under the provisions of s. 10(b). At the relevant time (the section was amended in 1979), s. 10(b) provides:

The wages liable to pay-roll tax under this Act do not include wages paid or payable —

(b) by a religious or public benevolent institution, or a public hospital.