W M Kuhnel and Company Limited v Deputy Federal Commissioner of Taxation (SA) [1923] HCA 58

33 C.L.R.] OF AUSTRALIA. B49

Solicitors for the Controller, Walleson, Stewart, Stawell & Nankivell. H.C. or A.

Solicitors for the Broken Hill Proprietary Co., Moule, Hamilton & a Kiddle. —. Solicitors for the Broken Hill South Silver Mining Co., Blake & "GjTRATAN Co. Lrp.

Riggall.

BL.

Fc)

[HIGH COURT OF AUSTRALIA.) WM. KUHNEL & COMPANY LIMITED . . APPELLANT ;

AND

THE DEPUTY FEDERAL COMMISSIONER

OF TAXATION (SOUTH AUSTRALIA) } Mosmnswiisa,

War-time Profits Tax—A ssessment—Deductions from profits—Commonwealth income H.C, or A. tax—Taxpayer « company—Shareholder a trustee—War-time Profits Tax 923, Assessment Act 1917-1918 (No 33 of 1917—No. 40 of 1918), secs. 15 (4), (5), = Ga 18—Income Tax Assessment Act 1915-1916 (No. 34 of 1915—No. 39 of 1916), Avetarpe, sec. 26 (1)—Income Tax Assessment Act 1915-1918 (No. 34 of 1915—No. 18 of Oct. 8, 4. 1918), sec. 26,

SyDNeEy, Held, that the proper method for determining the deduction, from the profits ee, 7,

of a company provided for by sub-secs. 4 and 5 (c) of sec. 15 of the War-time

Profits Tax Assessment Act 1917-1918, of Commonwealth income tax paid in DSC). respect of the profits is (a) as to the accounting periods 1916-1917 and 1917- Rich and 1918, to find the amounts of income tax that would have been payable by each

shareholder of the company if the share of the profits credited or paid to him

had been the only income derived by him from sources within Australia, whether the shareholder is a trustee or not; and (b) as to the accounting period 1918-1919, to find the amounts of income tax that would have been payable by each shareholder of the company if the share of the profits credited or paid to him had been the only income derived by him from sources within Australia, but limited where the shareholder is a trustee to the amount for which the trustee is to be separately assessed and liable under sec. 26 (2) of the Income Tax Assessment Act 1915-1918.