Henderson and Sons v Federal Commissioner of Taxation [1924] HCA 22

294 HIGH COURT (1924.

[HIGH COURT OF AUSTRALIA.)

HENDERSON AND SONS . i is . APPELLANTS ; AND THE FEDERAL COMMISSIONER OF TAXATION ReEsponpeEnt.

H.C. or A. War-time Profits Tax—-Assessment—Accounting period—Pre-war trade year—War- 1924. time Profits Tax Assessment Act 1917-1918 (No. 33 of 1917—No. 40 of 1918), eee secs. 7 (4), 16 (3), (12)—Aeets Interpretation Act 1901-1918 (No. 2 of 1901—No.

Mexpourne, 8 of 1918), sec. 22. May 29;

June 12.

A partnership, which commenced business in June 1912, pursuant to its deed of partnership took yearly accounts of its transactions as on the last day of Starke J. December in each year. In assessing the partnership for war-time profits tax for the year 1916-1917, the Commissioner adopted the period of the calendar year for the purposes of computing the war-time profits.

Held, that, for the purposes of assessing the partnership for war-time profits tax under the War-time Profits Tax Assessment Act 1917-1918, the " accounting period " was the yearly period ending on the last day of December, and that, as there was only one of such periods before 5th August 1914, there was within the meaning of see. 16 (12) only one pre-war trade year.

Walker & Co. v. Federal Commissioner of Taxation, (1923) 32 CLR. 401, followed and applied.

Apprat from the Federal Commissioner of Taxation.

A partnership under the name of Henderson & Sons, having been assessed for war-time profits tax for the year 1916-1917, appealed to the High Court from the assessment, and the appeal was heard by Starke J.

The grounds of the appeal and the other material facts appear in the judgment hereunder.

Latham K.C. and Richardson, for the appellants.

Ham and Herring, for the respondent. Cur. adv. vult.

34 C.L.R.] OF AUSTRALIA.

Srarke J. delivered the following written judgment :

Henderson & Sons have been assessed to war-time profits tax for the financial year 1916-1917, and have appealed from that assessment. The appeal depends upon the proper method of computing the pre-war standard of profits.