Commissioner of Taxation for Western Australia v Newman [1921] HCA 37

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HIGH COURT usa1,

[HIGH COURT OF AUSTRALIA.)

THE COMMISSIONER OF TAXATION FOR |

WESTERN AUSTRALIA... . . J APPELLANT; NEWMAN . eae nee Respoxnent. H.C. or A, Income Tax (W.A.)—Astenement—Sale of pastoralists businear ax going concern 1921 Income of vendor— Assessment as to Vive-lock—Land and Income Tas Aawse was ment Act 1907 (WA.) (No. 15 of 1907), sect. 2,16 (1) ()- Pear, aR hk rs re ren dees dar (7a) ee tia that "(1) Subject to the provisions of this Act and the regulations hereunder, Koos ¢3., there shall be charged, levied, collected, and paid to the Commissioner. 'SankeJ3- an income tax at such rate per pound as Parliament shall from time to time

declare and enact in respect of the annual amount of all incomes exceeding two hundred pounds per annum. (a) arising or aceruing to any person whereso: 'ever residing, from any profession, trade, employment, or voeation carried 'on in Western Australia, whether the same is earried on by such person oF 'on his behalf wholly or in part by any other person."

A person who carried on business in Western Australia as a pastoralist sold his property, including live-stock and plant, as a going concern. The Commissioner of Taxation for that State made an apportionment of the par- 'chase money in respect of the livestock, and assessed the vendor on that amount as income derived from earrying on a business.

Held, that as the transaction was not in the course of carrying on the businest 'for the purpose of carrying on the business, but was for the purpose of putting an end to the business, neither the purchase money nor any part of it was taxable under seo. 16 (1) (a) of the Act.

Querre, per Higgins J., whether any profit had been shown even on realization of the business,

D

mn of the Supreme Court of Western Australia affirmed.

OF AUSTRALIA.