Cornell v Deputy Federal Commissioner of Taxation (SA) [1920] HCA 65

CLR) OF AUSTRALIA. 30

of such money as aforesaid. Costs of the H.C. oF A. respondents Clancy of this appeal to be 182

paid by the appellants. Guxesox

Frrzparnice.

Solicitor for the appellants, P. W. McCarthy, Lockhart, by © —

8. L. Ridge. Solicitors for the respondents, P. W. McCarthy, Lockhart, by

S.L. Ridge ; Walsh & Blair, Wagga Wagga, by McDonell & Moffitt.

ee

BL.

[HIGH COURT OF AUSTRALIA)

TEE bdo APPELLANT ;

THE DEPUTY FEDERAL COMMISSIONER ) ae OF TAXATION (SOUTH AUSTRALIA) | SPSPOSPEST-

Income Tasr—Assessment—Income—Shareholder in company—Cndistributed income H.C. o¥ A. of company—Legislative power of Commonvcealth Parliament—Ultra vires— 1920. Commissioner of Taxation—Judicial power—The Constitution (63 & Ot Vic. —~

55, T1—Income Tar Assessment Act 1915-1918 (No, 34 MELBOURNE, Oct

See! 16 (2) of the Income Tas Assessment Act 1015-1018 provides that * Where, in the opinion of the Commissioner, a company has not in any' y ributed to its members or sharcholders a reasonable proportion of its taxable income, the taxable income of the company' shall be deemed to have teen distributed to the members or shareholders in proportion to their interests in the paid-up capital of the company, if the Commissioner is satisfied that the total tax payable on it as distributed income is greater than the tax payable on it by the company."

Held that the provisions of the sub-section are within the powers conferred 'on the Parliament of the Commonwealth by se. 51 (t.) of the Constitution.

Starke 3

HIGH COURT

Osborne v. The Commonwealth, 12 C.LAR., 821 ; Attorney-General for Qu land v. Attorney-General for the Commonwealth, 20 C.1.R., 148 ; 822; Morgan, Deputy Federal Commissioner of Land Tax (2 CLR, 661; National Trustees, Executors and Agency Co. of Australasia Federal Commissioner of Taxation, 22 C.1.R., 367, followed and applied. Waterhouse . Deputy Federal Commissioner of Land Tax (S.A.), 17 C.laRy 85, distinguished. :