Federal Commissioner of Taxation v J Walter Thompson (Australia) Pty Ltd [1944] HCA 23

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THE FEDERAL COMMISSIONER OF TAXA-

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Cons Neeshan v

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144 FLR 443

TION

J. WALTER THOMPSON (AUSTRALIA) PROPRIETARY LIMITED 4

Pay-roll Tax

dent contractors—Remuneration—Pay-roll Tax Assessment Act 1941-1942 (No. 2

(Chy—*

STRALIA.

(HIGH COURT OF AUSTRALIA.)

\ APPELLANT ; AND RESPONDENT.

Wages" —Radio plays—Radio artists—Employees or indepen- 44. op A. 1944.

of 1941—No. 48 of 1942). ee Sypwey,

A company presenting radio plays engaged for each play artists suitable for the various parts and made with each artist a contract whereby the artist was to receive a fee for the performance, but no fees for rehearsals, and was Minow obliged to attend rehearsals, and a right to cancel was reserved to the company Sep, if the artist's work should not be satisfactory to the producer, The production of the plays required detailed and extensive control of the artists during both rehearsals and the final performance.

Latham C.J,

Held that the relationship between the company and each artist was that of employer and employee or master and servant and not that of independent contractors, and that the fee paid to him was "wages" as defined by s. 3 of the Pay-roll Tax Assessment Act 1941-1942 ; tax under that Act was therefore payable in respect of such fees.

Apprat from the Board of Review. The Federal Commissioner of Taxation appealed under s. 40 (5) of the Pay-roll Tax Assessment Act 1941-1942 to the High Court

a against a decision by a majority of the Board of Review, reversing a decision made by the Commissioner that payments made by J. Walter Thompson (Australia) Pty. Ltd. to certain radio artists for services rendered by them under engagement were wages within the meaning of that Act and therefore taxable. The appeal was heard by Latham C.J., in whose judgment the facts are sufficiently set forth.