Solomon v New South Wales Sports Club Limited [1915] HCA 31

H. C. or A. 1915.

SypNey, April 19, 20,

Grifith C.J., Isaacs and Gavan Dufly JJ.

HIGH COURT (1915. (HIGH COURT OF AUSTRALIA.] SOLOMON APPELLANT ; DEFENDANT, AND THE NEW SOUTH WALES SPORTS CLUB R : LIMITED _[ RESPONDENTS.

PLAINTIFFS,

ON APPEAL FROM THE SUPREME COURT OF NEW SOUTH WALES.

Covenant—Construction—Lease—Covenant by lessee to pay all rates, tazres, dc., "except land tax" —Rate on unimproved capital value—Rate in lieu of land tax —Sydney Corporation (Amendment) Act 1908 (N.S. W.) (No. 27 of 1908),

secs. 4, 5, 11.*

*By sec. 4 of the Sydney Corporation (Amendment) Act 1908 it is provided that " The Council shall, in and for the year 1909, and in every sncceeding year, make and levy a general rate of not less than one penny in the pound upon the unimproved capital valne of all ratable property in the city. Such rate shall be in aildition to any rate under the Principal Act," (Sydney Corporation Act 1902) 'or any other rate under this Act : Provided that the total amount leviadle under this Part, or under this Part and the Principal Act, as the case may be, shall not exceed the amount which would be yielded by a rate of threepence in the pound on the unimproved capital value, and two shillings in the pound on the average annual value taken together of all ratable property in the City." By sec. 5 it is provided that " The Governor shall forthwith, on the Couneil imposing such rate on such unimproved capital value, proclaim that the operation of" the enactments dealing with taxation of land values "are and the same shall thereupon be suspended in the City." Sec. 11 pro-

vides that the amount of any rate is to be paid by the owner of the property in respect of which the rate is levied, '*(2) Provided that where a lessee of ratable property has before the first day of November 1908 agreed with the owner, or with the mesne lessee from whom he immediately holds, to pay municipal or local government taxes, whether under those designations or under any words of deseription which would include municipal or local government rates, the owner and all the lessees, including mesne lessees, shall, notwithstanding such agree- ment and during the currency of such agreement, be respectively liable, as between themselves, for so much of the rate under this Part as is equal to the amount of the land tax, or tax in lieu of land tax, on the land' which they re- spectively would have been liable to pay under the Acts" dealing with taxation of land values, * if the opera- tion of the said Acts had not been sus- pended, based on the valuation of the unimproved capital value under this Part."