Queensland Stations Pty Ltd v Federal Commissioner of Taxation [1945] HCA 13

'Appl/Foll 'Cons

Foll Gai 70 C.L.R.] OF AUSTRALIA.

[HIGH COURT OF AUSTRALIA.]

~ QUEENSLAN D STATIONS PROPRIETARY

-LIMITED . % P ys . see APPELLANT ;

AND

_ THE FEDERAL COMMISSIONER OF TAXA-

Be er leap ResponDEnr.

- Pay-roll Tax (Cth.)—* Wages" —Drover—Droving contract—Employes or indepen- dent contractor—Remuneration—Pay-roll Tax Assessment Act 1941-1942 (No. 2 of 1941—No. 48 of 1942), «. 3.

A drover agreed with the owner of cattle to serve in the capacity of a drover, drove certain cattle to a place of destination, obey and carry out instructions and devote the whole of his time, energy and ability to droving the stock. His remuneration was a fixed sum per head of cattle delivered, As drover he was bound to find the men, plant, horses and rations necessary and pay all wages in connection therewith.

Held that the payments made to the drover were not wages within the meaning of the Pay-roll Tax Assessment Act 1941-1942 and that the company was not liable to pay-roll tax in respect of these payments.

Per Rich J. and semble per Latham C.J. and Dizon J.; The relationship between the owner and the drover was that of employer and independent contractor. Logan v. Gilchrist, Watt d+ Cunningham, (1927) 33 A.L.R. 321, wherein it was held that the owner was liable for trespass by sheep in charge of a drover on the ground that the relationship between the owner and the drover was that of master and servant, considered : Latham C.J. and Dizon J. were of opinion that the actual decision in the case was correct, because, under the express terms of the contract, control of the trespassing cattle was retained by the owner, but questioned whether the relationship was that of master and servant ; Rich J. distinguished the case.

Case Srarep.

Queensland Stations Pty. Ltd. appealed to the High Court from a decision of the Board of Review which confirmed a decision made by the Federal Commissioner of Taxation that certain payments made