Jones and Steains v Federal Commissioner of Taxation (No 2) [1928] HCA 16

41 C.L.R] OF AUSTRALIA. 99

be Yes as to the sum of £111; to question 4 no answer; to H.C. or A. question 5 should be No. ea

Jongs &

Questions answered: (1) Yes; (2) 31st July Srmars

1914; (3) Both; (4) Yes; (5) No. pe Commis- SIONER OF

Solicitors for the appellants, Dunlop & Dunstan. Tees Solicitor for the respondent, W. H. Sharwood, Crown Solicitor for — {No. 1).

the Commonwealth. Ta

1g {HIGH COURT OF AUSTRALIA.) JONES AND STEAINS 2 z 2 a . APPELLANTS ; AND THE FEDERAL COMMISSIONER OF } fies A TAXATION :

[No. 2]

War-time Profits Tax—Assessment—Recent commencement of business—Profils— ¥. ©, or A. " Pre-war standard of profits" —" Profits standard" —Deductions—War-time 998, Profits Tax Assessment Act 1917-1918 (No. 33 of 1917—No. 40 of 1918), secs. = ow 7, 11, 12 (1) (6), 16. July 19, 25.

On a case stated by Isaacs J. the High Court decided that the pre-war Isaacs J.

standard of profits of the business carried on by the appellants was £372, being an amount proportionate for the period of twelve months to the actual profits during the pre-war period during which the business was cared on as provided by sec. 16 (6) (a) of the War-time Profits Tax Assessment Act 1917- 1918, and that o deduction should be made from the profits of that business earned in the relevant accounting period of the sum ascertained in accordance with the provisions of sec. 12 (1) (4) of the Act.

Held, by Isaacs J., that the phrase " pre-war standard of profits" was not identical with the phrase "profits standard" used in the Act, and that the provision in seo. 16 (3) that the profits standard "shall not in any case be less than the sum of five hundred pounds " was not applicable ; and, consequently, that the sum of £372 was the profits standard to be applied when making the deduction from the said profits required by sec. 12 (1) (6) of the Act.