Morgan v Deputy Federal Commissioner of Land Tax, New South Wales [1912] HCA 88

Jolt

Sener (OU)

on

OF AUSTRALIA.

(HIGH COURT OF AUSTRALIA.

MORGAN . . P ' F , 'i . APPELLANT; AND

THE DEPUTY FEDERAL COMMISSIONER

OF LAND TAX, NEW SOUTH WALES } aoe.

shareholders in respect of land of company—The Constitution (63 & 64 Vict. c. 12), seca. 51 (ii.), 55—Land Tax Assessment Act 1910-1911 (No. 22 of 1910— Wo. 12 of 1911), sec. 39.

In the exercise of the power of taxation conferred by sec. 51 (ii.) of the Constitution, the Parliament of the Commonwealth in selecting subjects of taxation is entitled to take things as it finds them in rerum natur@, irrespec- tive of any positive laws of the States prescribing rules to be observed with regard to the acquisition or devolution of formal title to property, or the institution of judicial proceedings with regard to it.

Held, therefore, that the tax imposed by the Commonwealth Parliament by sec, 39 of the Land Tax Assessment Act 1910-1911 upon the shareholders ofa company in respect of land owned by the company, is land taxation, and is not invalid by reason of sec. 55 of the Constitution.

Sreciat Case stated by Isaacs J. for the opinion of the Full Court of the High Court under sec. 46 of the Land Tax Assess- ment Act 1910-1911.

The special case was as follows :—

1. This is an appeal from assessment of land tax.

2. The appellant is a resident of New South Wales, and is the owner of real estate in fee simple situate within the State of

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Land Tax—Power of taxation—Subject of taxation—Company—Taxation of H.C. or A.

1912. =

SypNey, Dec. 11, 19.

Griffith C.4., Barton and Isaacs JJ.

H. C. oF A.

1912. ~

Morcan °. Deputy FEDERAL Commis- SIONER OF Lanp Tax, [N.S.W.

HIGH COURT (1912.

3. The unimproved value of such land has been assessed at the sum of £1,797.

4. The appellant is the holder of 240 one pound fully paid up shares in the capital of the State Investment Company of New South Wales Limited, of which the total amount of paid up capital is £1,750.