Bowles v Federal Commissioner of Taxation [1919] HCA 16

THE FEDERAL COMMISSIONER *}

OF AUSTRALIA.

{HIGH COURT OF AUSTRALIA.)

BOWLES. < r r sj ' ' . APPELLANT 3

AND

TAXATION baad | Sieicoicit. & J. | Resronpenr,

Income Tax—Assessment—Special deductions—Deduction of £156—A>pportignment —Method of computation—Income from personal exertion and from properly— Income Tax Assessment Act 1915-1916 (No. 34 of 1915—No. 39 of 1916), secs. 18, 19.

Where income is derived from both personal exertion and property the proper method of working out the deduction under sec. 19 of the Income Tax Assessment Act 1915-1916 is, after making the deductions permitted by sec. 18, first to apportion the sum of £156 pro ratd between the income from personal exertion and that from property ; then from the income from personal exertion to deduct the proportional sum attributable to the income from personal exertion less £1 for every £4 by which the income from personal exertion exceeds that proportional sum, and from the income from property to deduct the proportional sum attributable to the income from property less £5 for every £11 by which the income from property exceeds that proportional sum,

So held by Barton, Isaacs, Gavan Duffy and Rich JJ.

Per Griffith C.J.:—The proper met od is to apportion betwe nthe income fr m personal exertion and ths income from property so much of the sum of £156 as remains after making the prescribed « iminutivns from it,

There is no diminution in respect of either source of income unless that

income excceds £156.

Case STATED. On an appeal by Ivor Willans Bowles to the Supreme Court of

New South Wales from an assessment of him for Federal income tax for the year commencing Ist July 1916, Pring J. stated a case for

the opinion of the High Court which was substantially as follows :— VOL XXVI. 13

H.C. oF A. 1919. Ww

SypNey, April 25 ; dmay 3.