Jolly v Federal Commissioner of Taxation [1934] HCA 66

50 C.L.R.] OF AUSTRALIA. 131

{HIGH COURT OF AUSTRALIA.]

JOLLY . e * ; z is . . . APPELLANT;

AND

FEDERAL COMMISSIONER OF TAXATION . Responpent.

ON APPEAL FROM DIXON J.

Income Tax (Cth.)—Assessment—Failure to include assessable income—Subsequent 4.0, o A.

voluntary disclosure—Liability for additional tax—Deduction—Payment of 1933-1934. interest—Whether money exclusively expended for production of income—Sale of = shares at profit—Whether business of dealing in shares conducted—Profit liable 1933.

to assessment—Dividends from stock—Profits of company liable to British income MELBovrNR, tax—Some dividends declared free of British income tax; other dividends not— Oct. 23, 24,25; Whether tax payable on amount before deducting British tax or only on net amount — Nor. 10. received—Income Tax Assessment Act 1915-1921 (No. 34 of 1915—No. 31 of 1921), secs. 12a, 14 (b), 18 (1) (a), 20 (e)—Finance Act 1920 (10 & 11 Geo. Ve ——

¢. 18), sec. 27 (5). 1934. MEtEouRNE,

The taxpayer was assessed to income tax in respect of income received — yyay, 5,

during the four years 1917 to 1921. In 1927 the taxpayer voluntarily furnished

amended returns of income for the years in question. In 1931 the Commis- "Sy" uur

-sioner altered the original assessment upon the basis of the amended retum Starke, Evatt

submitted by the taxpayer. The amended assessment included a penalty for JJ.

omitted income under sec. 59 (1) () of the Income Tax Assessment Act 1915-

1921 imposed upon the ground that the taxpayer had failed to include assessable

income in his returns.

Hela, by Dizon J. and on appeal by the Full Court, that the taxpayer came within the description of a " person who fails to include any assessable income 'in any return " in sec. 59 (1) (6) and was liable to the penalty imposed by that section, and that the Court could not review the discretion of the Commis- sioner who had not remitted any additional tax, as he had power to do.