Webb v Syme [1910] HCA 32

482 HIGH COURT [1909,

H.C. or A. the property indicated by "chattels and effects" construed as

ey already indicated, and I am therefore of opinion that no right to

Gots. the receipts or certificates (which were merely indicia of the

Mone & Go, Property represented by them) was transferred to the appellants Lee. by the deed of July 1900. The appeal therefore fails, Torsos. are Appeal dismissed.

Solicitors, for appellants, J. F. Fitegerald & Power. Solicitors, for respondent, Flower & Hart.

Hy, Yous

Sat

(HIGH COURT OF AUSTRALIA.}

THOMAS PROUT WEBB (COMMISSIONER) pete OF TAXES OF VICTORIA) =) :

AND

SYME AND OTHERS . . 7 7 . RESPONDENTS.

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

H. ©. or A, Income tax—Income derived from trust estate—Trade carried on by trustees—Income

1910. from personal exertion or income the produce of property—Income Tax Act ae, 1895 (Vict.) (No. 1374), secs. 2, 8, 9, 12—Income Taw Act 1896 (Vict.) (No. Metnourxr, 1467), secs. 4, 12. area Under the Victorian Income Tax Acts the income tax is an impost laid Dias upon individual persons in respect of annual incomes received by them for their own use and disposition. Griffith C.J., ooestane Where a business is carried on by trustees under trusts which, although for Teance J3. the benefit of the beneficiaries, do not constitute them the owners of the

business, and the beneficiaries are entitled to the income of the trust estate, the beneficiaries and not the trustees are the taxpayers in respect of the incomes of the beneficiaries, and the trustees are not taxpayers at all except

10 CLR.) OF AUSTRALIA.

so far as they are answerable under sec. 12 of the Zncome Tax Act 1895 for H. @. or A.

income tax payable by the beneficiaries or except so far as they may be liable under see, 12 (1) (1d) of the Income Tax Act 1896.

A testator gave the whole of his real and personal estate to six trustees, who included his five sons, upon trusts for conversion with full power of postponement and management, but the power of conversion was not to be exer- cised as to a newspaper business, which had been carried on by the testator, until the death of the last survivor of the sons. After giving certain legacies and annuities, payable in one case out of the general income of the estate and in another out of the profits from the newspaper business, and directing certain sums to be set aside for specific purposes, he directed that, subject to these trusts, the trustees should hold his ''residuary real and personal estate including " the newspaper business upon trust, until the death of the last survivor of the sons, to divide the income into five equal shares and to pay one share to each of his five sons during his life or until attempted alienation, and on further trusts which would not terminate until the death of the last survivor of the sons. He gave to the trustees the fullest powers of carrying on and managing the newspaper business, and expressed his desire that that business should '' remain in the possession of his five sons and the survivors and survivor till the death of the last survivor." A large part of the fund anouaily distributable by the trustees among the five sons consisted of the profits from carrying on the newspaper business.