Commissioner of Taxation v Clyne [1958] HCA 10

COMMISSIONER OF TAXATION OF THE

TPRENR Pag per:

HIGH COURT (1957-1

[HIGH COURT OF AUSTRALIA.)

COMMONWEALTH OF AUSTRALIA \

AND

CLYNE. - 3 : 2 5 7 ; Derenpanr.

H.C. or A. Income Tax (Cth.)—Provisional tax and contribution—Whether within power

1957-1958. Ww 1957,

Sypyry,

Nov. 12, 13, 14, 15;

1958, Apr. 2. Dixon C.J.,

McTiernan, Williams,

'Taylor JJ.

make laws with respect to taxation—Not separate tax but liability ancillary income tax and social services contribution—Constitutional validity—Ma other than taxation—Whether combined in statute imposing taxation—Ct of provisional tax not acquisition of property on unjust terms—Prescribed Zone allowances—Discrimination between States or parts of States—Validity 9 section introducing discriminatory provision—Invalid ab initio—Never part of Principal Act—Preference to one State or part thereof over another or part thereof—The Constitution (63 & 64 Vict., c. 12). ss. 51 (1i.) (wei. 55 99—Income Tax and Social Services Contributions (Individuals) Act 1956 8. 12—Income Tax and Social Services Contribution Assessment Act 1936-1956 $8. 79a, 22lya.

The system of provisional tax and contribution as prescribed by Div. Pt. VI of the Income Tax and Social Services Contribution Assessment A 1936-1956 is within the power conferred on the Parliament of the wealth by s. 51 (ii.) of the Constitution.

So held by the whole Court.

Per Dixon C.J., McTiernan, Williams, Kitto and Taylor JJ.: The liabi pay provisional tax and contribution is not a liability to a separate and d tax but is ancillary to the liability to income tax and social services bution required by s. 17 of the Assessment Act to be levied and paid upon th taxable income derived during the year of income by any person. The p of the provisional tax and contribution provisions is not simply to enst payment of tax but to bring the discharge of the burden of tax into close temporal relation with the accrual of the income upon which the tax is levie The execution of such a policy is fairly within the power in s. 51 (ii Constitution even if it be described as incidental. The main purpose of th power is expressed by the words " with respect to taxation ". It gives a leg lative authority which includes prima facie whatever is reasonably at properly incidental to the effectuation of the purpose. 'There is no reason. the means described in Div. 3 of Pt. VI for giving effect to the principle not be regarded as proper for the effectuation of the power to make laws it respect to taxation.