Hickman v Federal Commissioner of Taxation [1922] HCA 58

Insurance. Taxation ES 232 HIGH COURT iet [HIGH COURT OF AUSTRALIA.) HICKMAN. - 4 : 5 E . APPELLANT;

H.C. or A, War-time Profits Tax—« Profits arising from any business °—Business of grazier—

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BrisBANE, June 21-23.

Higgins J.

THE FEDERAL COMMISSIONER OF )

Appeal—War-time profits tax assessment—Interest on amount overpaid—Jurisdiction —

AND

TAXATION jicits.tsr reheat ae RESPONDENT. —

Sale of grazing property with all improvements and live-stock—Assessment a3 to live-stock—War-time Profits Tax Assessment Act 1917-1918 (No. 33 of 1917— No. 40 of 1918), secs. 4, 7, 10, 14, 15, 16.

—Notice of assessment—Form—War-time Profits Tax Assessment Act 1917- 1918 (No. 33 of 1917—No. 40 of 1918), secs. 22, 26, 29, 30.

Sec. 7 of the War-time Profits Tax Assessment Act 1917-1918 provides that there shall be levied and paid on all war-time profits from any business to which the Act applies arising after the 30th June 1915 a war-time profits tax at arate — declared by Parliament. By sec. 10 the profits arising from any business — shall be determined separately, and on the same principles as the profits and gains of the business would be determined for the purpose of Commonwealth income tax, subject to certain modifications. By sub-sec. 2 of sec. 14 the tax may be assessed on any person for the time being owning or carrying on the business, and where there has been a change of ownership the accounting period may be taken to be the period ending on the date on which the ownership changed; and by sub-sec.5 the person to whom the business was transferred is personally liable to pay the tax which may be subsequently assessed as payable by the former owner. Sec, 15 provides that subject to the Act the profits are to be taken as the "actual profits arising in the accounting period" from sources within Australia, and prescribes rules for computation of profits. Sec, 16 defines the " pre-war standard of profits," refers to profits " arising from. the business on the average " of certain years, and indicates that profits liable to tax must arise from a business which is carried on during the relevant accounting period.