W Thomas and Company Limited v Commissioner of Taxation (WA) [1931] HCA 11

AN 5GeCRTLP Gass 7 408

45 C.L.R.] OF AUSTRALIA. 539

[HIGH COURT OF AUSTRALIA.]

W. THOMAS AND COMPANY LIMITED. APPELLANT ; PLAINTIFF,

AND

THE COMMISSIONER OF TAXATION (WESTERN AUSTRALIA) DEFENDANT,

} RESPONDENT.

ON APPEAL FROM THE SUPREME COURT OF WESTERN AUSTRALIA,

| Dividend Duties—Tacxation—Profits—Realization of assets—Whether profits liable to H. ©. or A. dividend duties—Dividend Duties Act 1902-1924 (W.A.) (No. 32 of 1902—No. 1931, 35 of 1924), secs. 5, 6. Ww

MELBOURNE, Secs. 5 and 6 of the Dividend Duties Act 1902-1924 (W.A.) impose 2 duty upon

Feb 24,

the profits made in every year by a company carrying on business in Western

Australia, Sypyey, April 4.

Held, that when the Act uses the words all profits made by a company

carrying on business, it is referring to profits arising from the trading or business Starke, Evatt operations of the company, and not to profits of any description, such as a increments arising from the appreciation in the value or the realization of capital assets of the company, and, consequently, that profits arising on a realization of part of the company's assets were not liable to taxation under that Act.

Decision of the Supreme of Court Western Australia (Full Court): Thomas

& Co. vy. Commissioner of Taxation (State), (1930) 33 W.A.L.R. 54, reversed.

'Apeat from the Supreme Court of Western Australia.

_ The facts stated by the Court were as follows :— The appellant, - Thomas & Co. Ltd., is a company incorporated in South Aus- lia, and carried on there and in Western Australia the business flour millers and grain merchants. In 1927 an agreement was itered into between the Company and a trustee or agent for a

H.C. or A.

1931. rs)

W. Tomas & Co. Lav. v. Commus- SIONER OF 'Taxation

(W.A.).

HIGH COURT (1931,

Company about to be formed, whereby the business in Western Australia and the assets, plant and goodwill connected therewith