Patterson v Federal Commissioner of Taxation [1936] HCA 57

56 C.L.R.] OF AUSTRALIA.

[HIGH COURT OF AUSTRALIA.]

PATTERSON AND ANOTHER . a Fi . APPELLANTS ;

AND

THE FEDERAL COMMISSIONER OF TAXATION Responpenv.

Income Tax (Cth.)—Assessment—Taxing Act passed after death of taxpayer—Income derived up to date of death—Liability of executors—* Accounting period "— Income Tax Assessment Act 1922-1932 (No. 37 of 1922—No. 76 of 1932), sec. 62.

A taxpayer whose returns for purposes of Federal income tax were made up for an accounting period coinciding with the calendar year died in June 1932. His last payment of income tax was for the financial year 1931-1932, based on income derived by him during the twelve months' period ended 31st December 1930. No return was made in respect of the financial year 1932-1933, so, in respect of that year, the Commissioner of Taxation, under secs. 36 and 62 (3) of the Income Tax Assessment Act 1922-1932, made an assessment on the tax- payer's executors. The taxing Act imposing income tax for that financial year was passed on 5th December 1932. The taxpayer's estate was liable to duty under the Estate Duty Assessment Act 1914-1928.

Held that 31st December 1931 was "the end of the accounting period immediately preceding the" taxpayer's death within the meaning of that expression in sec. 62 (4) of the Income Tax Assessment Act 1922-1932 ; there- fore, under sec. 62, his executors were liable to pay income tax for the financial year 1932-1933 in respect of the income derived by the taxpayer during the year ended 31st December 1931.

Aitken v. Federal Commissioner of Taxation, ante, p. 491, followed.

Per Dizon J.: The liability of executors under sec. 62 is as representatives and extends only to the assets of the deceased coming to their hands or which ought to come to their hands.

Case Sratep. On an appeal to the High Court by John Hunter Patterson and William Leslie Prendergast, executors and trustees appointed under