Deakin v Webb [1904] HCA 57

C.L.R.| OF AUSTRALIA. 585,

Solicitor, for the appellant, V. W. Montagu. ae oe a Solicitor, for the respondent, The Crown Solicitor of New South —— Wales. WE apey a. Fi % oy

ic 1906) 4CLR_ panes Bowanivs. ite & (her

{HIGH COURT OF AUSTRALIA.}

ALFRED DEAKIN. . .. . APPELLANT;

THOMAS PROUT WEBB (COMMISSIONER) j2, so. nove SSM rt ae 'SIR WILLIAM LYNE ein HA ldaegiee bly APPRULANT } 7a THOMAS PROUT WEBB (COMMISSIONER)

OF TAXES) 4; RESPONDENT.

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

eeeetiee potoer of State—Limits inter se of Constitutional powers of Commonwealth H.C. or A. and State~Control of Commonwealth Ag Income Tax —Tasation of 1904. Tncome of Commonwealth Oficer—Income taxed after receipt ~Appeal to Privy = —— Council—Applieation for Certificate— Special reasons"—The Constitution, MELBOURNY, secs, 52 (ii.), 74, 106-109—Income Tax Act 1895 (Victoria) (No. 1374), secs. 2, a lari Ii, 7,9, 14; Income Tax Act 190) (Victoria) (No. 1758). ot

The principle enunciated in D'Linden v. Pedder (ante p. 91, at p. 111), that 'when a State attempts to give to its legislative or executive authority an operation

which, if valid, would fetter, control, or interfere with, the free exercise of the

lative or executive power of the Commonwealth, the attempt, unless expressly Barton ane connor,

ney

uithorized by the Constitution, is to that extent invalid and inoperative," e-aflirmed.

An Income Tax Act of a State, in so far as it attempts to tax the salaries of officers of the Commonwealth, is within the above principle.

Such an Act of a State is not taken out of the above principle by reason of he fact that the income tax is assessed on salary received during a preceding year.

HIGH COURT

Held, therefore, that the salaries of a Minister of the Crown for the monwealth and of a member of the Commonwealth Parliament, so far as they earned in Victoria, are not liable to assessment under the Income Tax Acts 0 Victoria.