Commissioner of Income Tax (Qld) v Bank of New South Wales [1913] HCA 38

Perea oy NSW

H.C. or A. 1913. —

SyDNEy,

Aug. 4, 5,20

Powers and Rich JJ

HIGH COURT (1913,

(HIGH COURT OF AUSTRALIA.]

THE COMMISSIONER OF INCOME TAX

} APPELLANT; (QUEENSLAND) . ' i zi A

AND THE BANK OF NEW SOUTH WALES . RESPONDENTS.

ON APPEAL FROM THE SUPREME COURT OF QUEENSLAND.

Income tax—Company—Profits— Premiums on shares—Income Tax Act 1902 ((d.) (2 Hdw. VIL., No. 10), sec. 31—Bank of New South Wales Act 1850 (N.S.W.), secs, 2, 8, 16, 23.

Sec. 31 of the Income Tax Act 1902 (Qd.), as amended by sec. 11 of the Income Tax Act Amendment Act 1904, provides that in the case of foreign com- panies "if the company carries on in Queensland the business of banking and no other business whatsoever, its income shall be a sun which bears the same proportion to the total profits of the company as the amount of its assets and liabilities in Queensland bears to its total assets and liabilities, not including liabilities to capital or reserves."

Held, that premiums received by such a company on shares issued by it are not " profits" within the meaning of the section.

Decision of the Supreme Court of Queensland : Commissioner of Income Tax v. Bank of New South Wales, (1913) S.R. (Qd.), 93, affirmed.

AppeAL from the Supreme Court of Queensland.

On the hearing of certain objections taken by the Bank of New South Wales to an assessment for income tax made by the Commissioner of Income Tax, the Court of Review determined the objections in favour of the Commissioner, and stated a case for the opinion of the Supreme Court, which, so far as is material, was as follows :—

16 C.L.R.] OF AUSTRALIA.

1, The Bank of New South Wales is a joint stock banking com- pany constituted under a deed of settlement dated 28rd August 1850, and incorporated in 1850 in the State (then Colony) of New South Wales under an Act entitled "An Act to incorporate the proprietors of a certain banking company called 'The Bank of New South Wales' and for other purposes therein mentioned." The said Act and the said deed of settlement have been amended from time to time.