Colonial Gas Association Limited v Federal Commissioner of Taxation [1934] HCA 12

H. C. or A. 1934. Se

MELBOURNE,

March 2; May 23.

Rich, Starke, Dixon, Evatt and MeTiernan JJ.

HIGH COURT ie

{HIGH COURT OF AUSTRALIA.]

COLONIAL GAS ASSOCIATION LIMITED. Appprtant;

AND

THE FEDERAL COMMISSIONER OF TAXATION Responpent.

Income Tax (Cth.)—Assessment—Company—Debentures—Interest paid to absentees —Liability of company to assessment—Validity of legislation —The Constituti (63 & 64 Vict. c. 12), sec. 55—Income Tax Assessment Act 1922-1932 (No. 3 of 1922—No. 76 of 1932), sec. 20 (2) (b).

issued both in England and in Australia, and used that money in Australis, One register of debentures was kept at the English office of the company and

later transferred to the English register. All the debentures upon that were held by persons resident and domiciled elsewhere than in Australia.

absentee shareholders" upon the interest paid to these debenture holder during the years ending 30th June 1928, 1929 and 1931. 'The interest paid out of revenue earned by the company in Australia.

Held, that sec. 20 (2) (b) was not invalid as having an extra-territ application, or as contravening sec. 55 of the Constitution : It was accord within the powers of the Commonwealth Parliament, and the assessment valid.

Case Srarep.

The Colonial (Gas Association Ltd. having objected to ments to income tax upon interest payable during the years endi 30th June 1928, 1929 and 1931 to debenture holders resident a domiciled elsewhere than in Australia, and such objections hay

51 C.L.R.] OF AUSTRALIA.

been disallowed in part by the Deputy Federal Commissioner of Taxation, and the Commissioner at the request of the company having transmitted such objections to the Supreme Court of Victoria, Gavan Duffy J. stated a case for the opinion of the High Court pursuant to sub-sec. 8 of sec. 514 of the Income Tax Assessment Act 1922-1932. The case stated was substantially as follows :—