Electrolytic Refining and Smelting Company of Australia Pty Ltd v Commonwealth [1946] HCA 58

480 HIGH COURT [1945-19

{HIGH COURT OF AUSTRALIA.)

ELECTROLYTIC REFINING AND SMELTING } COMPANY OF AUSTRALIA PROPRIE- APPELLA TARY LIMITED ' . 4 i - 4

Derrenvant, AND

THE COMMONWEALTH . A 5 . Resronp! PLAINTIFF, 3

H.C. or A, Gold Tax (Cth.)—Liability—Principal and agent—Taxpayer appointed ag 1945-1946. Commonwealth Bank to take delivery of gold—Purchase by taxpayer of oe bearing materials in course of its business as smelter—Gold extracted and delivere

MeLBourne, to bank—Date of possession by bank—Gold Tax Act 1939 (No. 52 of 193 1945. Gold Tax Collection Act 1939 (No. 51 of 1939)—Defence (Monetary Contr Mar. 26,27; Regulations (8.R. 1939 No. 771939 No. 137)—National Security (Mo April 11. Control) Regulations (S.R. 1939 No. 91).

Latham C.5. The appellant company carried on the business of smelting and refi It purchased gold-bearing ores and other materials and treated them so

MELBOURNE, extract and refine their gold content, From abont 7th September 193 wee acted as agent for the Commonwealth Bank for the purposes, first, of Ce Defence (Monetary Control) Regulations, and subsequently of the Natio

as Security (Monetary Control) Regulations, which required persons in po web 25: of gold to deliver it to the bank or an appointed agent, Before its appointmen aoe stake as such agent the company had in its possession gold-bearing materials which Metierma and had purchased. 'These materials remained in its possession until after 16th Williams JJ. 4

September 1939. After that date it extracted the gold and delivered the Commonwealth Bank. The Commonwealth sought to recover from company tax alleged to be due in respect of the gold under the Gold Tax 1939 and the Gold Tax Collection Act 1939 on the basis that it was not deliver to the bank or an agent of the bank until after 15th September 1939.