Payne v Federal Commissioner of Taxation [1936] UKPCHCA 3

Foll

'Conley v Cepilesoner (rai Fc

Privy Counc.* 1936. Ww

May 21,22;

June 23.

HIGH COURT (1936.

or v

ee estoner Sse (PRIVY COUNCIL.) — Sik'le?

PAYNE . . A e sj 5 : ' . APPELLANT; APPELLANT,

AND

THE FEDERAL COMMISSIONER OF TAXATION ResponpeEnt. RESPONDENT,

ON APPEAL FROM THE HIGH COURT OF AUSTRALIA.

Income Tax (Cth.)—Assessment—Amount received and retained in sterling in London —Australian assessment—Buchange to be added—Assessed as though transmitted to Australia—Income Tax Assessment Act 1922-1931 (No. 37 of 1922—No. 28 of 1931), secs. 13, 32, 35—Income Tax Act 1931 (No. 24 of 1931), secs. 3, 6, Second Schedule.

During the year ending 30th June 1931 a taxpayer, who was resident and domiciled in Australia, received interest amounting to £5,671 from British funded stock. The interest was paid in British sterling to the credit of his bank account in London. The taxpayer used the money in London, and did not cause any part of it to be transferred or remitted to Australia. In his return of income for the financial year beginning Ist July 1931, the taxpayer included the sum of £5,671 so received in sterling as income derived by him during the preceding year. The Commissioner, however, assessed him, not in the sum of £5,671 received in sterling in London, but in the sum of £6,768, being the amount which the sums amounting to £5,671 in London would have produced in Melbourne if transferred to Melbourne at the rates of telegraphic transfer prevailing on or about the respective dates when the sums making up the amount of £5,671 were credited to the taxpayer's bank account in London.

Held that the assessment of £6,768 was correctly made, that both the Income Tax Assessment Act 1922-1931 and the Income Tax Act 1931, wherever they referred to " pounds," referred to units of Australian currency, and that the