Resch v Federal Commissioner of Taxation [1942] HCA 2

Fol Dist

State Ci Appl Appl Appl Cha 'ooling Appl i hamber of CT 38ATR So ser of ditial Pools Mhitual Pool That, ie pel fe Appl pe dustiny CY Ch 'ommerce & taht tae cr seen 'i i954 1s ne DCT Commonweal ba Induarmvc rch ENS AS TR LR 47 fe? ALR g 198 HIGH COURT (1941-1942. {HIGH COURT OF AUSTRALIA.] » RESCH APPELLANT ; AND THE FEDERAL COMMISSIONER OF TAXA-| R TION ; { ESPONDENT. H.C. or A. Constitutional Law—Laws imposing taxation—Validity—More than one subject of 1941-1942. taxation—Income tax Acts—Tax imposed on profits or gains of capital nature— Ser The Constitution (63 & 64 Vict. c. 12), sec. 55—Income Tax Assessment Act SYDNEY, 1922-1930 (No. 37 of 1922—No. 60 of 1930), secs. 16 (b), (d), (1), 168, 20, 1941, 21, 28—Income Tax Acts 1930 (Nos. 51 and 61 of 1930). Nov. 11-13. savas Income Tax (Cth.)—Winding up of company—Sale of assets to another company— 1942. Proceeds handed to shareholders and invested in pursuance of prior agreement Feb. 4. in purchasing company—Eaxchange of cheques—Amount representing reserves of

Rich, Starke, Dixon and

McTiernan JJ.

profits—Liability to tax—Lxception from tax of undistributed income accumulated prior to \st July 1914—Capitalization of portion of accumulated profits of company—Apportionment between profits accumulated after 1st July 1914 and profits accumulated prior to that date—Profits of year ended 30th June 1914— Assessment—Alteration—Calculation of period of three years—The Constitution (63 & 64 Vict. c. 12), sec. 55—Income Tax Assessment Act 1922-1930 (No. 37 of 1922—No. 60 of 1930), secs. 16 (b),* 16B,* 37,* 54, 55—Acts Interpretation Act 1901-1930 (No. 2 of 1901—Wo. 23 of 1930), sec. 29.

The Income Tax Assessment Act 1922-1930 and the Income Tax Act 1930 did not infringe sec. 55 of the Constitution by reason of their bringing into charge profits of a capital nature as well as profits in the nature of income.