Hooper and Harrison Limited (in Liquidation) v Federal Commissioner of Taxation [1923] HCA 56

458 HIGH COURT

{HIGH COURT OF AUSTRALIA.}

HOOPER & HARRISON LIMITED (IN TIGUIDATION Ge ei

'THE FEDERAL COMMISSIONER OF TAXA- | TION, 2 oh ceisler

H.C. or A, War-time Profits Tax—Assessment—Deductions from profits—* Income tax paid in

1923. respect of the profits""—Payment after accounting period—Income tax on profits ay paid to shareholders—Dividends paid after accounting period—Capital of business

Sypney, —Meaning of "trading profits invested in the business" —War-time Profits 3 Tax Assessment Act 1917-1918 (No. 33 of 1917—No. 40 of 1918), secs. 15 (4),

(5), 17 (1).* Held, by Knox C.J., Higgins and Gavan Duffy JJ., that under sec. 15 (4) o of the War-time Profits Tax Assessment Act 1917-1918 a deduction is allowed of income tax paid in respect of the profits of the accounting period. notwithstanding that it is paid after the accounting period has expired.

* Sec. 15 of the War-time Profits Tax be . . . (c) in the case of a Assessment Act 1917-1918, after provid- pany, the amount of the tax (if ing that the profits of a business shallbe paid by the company, together taken to be the actual profits arising the aggregate of the amounts of in the accounting period from sources that would have been payable by each. in Australia and that certain deductions shareholder if the share of the profits shall not, and certain others shall, be credited or paid to him had been the allowed, provides that "(4) Deductions | only income derived by him from shall not be allowed on account of sources within Australia: Ye &e. Sec. the liability to pay, or the payment of, 17 (1) provides that "The amount war-time profits tax . . :_ Pro- the capital of a business shal] be taken" vided that a deduction shall be allowed __to be the amount of its capital paid w from the profits of an accountin; period by the owner in money or in PS ia) (Common ven ee together with all accumulated ti State income taxes paid in respect. of th a5 profits invested in the business, wit profits, less any refunds of Common- the addition or subtraction of balances | wealth and State income taxes received brought forward from previous years in the accounting period," &. '"(5) to the credit or debit respectively 4 For the purposes of this section 'income profit and loss account." tax paid in respect of the profits ' shall