Ravenshoe Tin Dredging Ltd v Commissioner of Taxation (Cth) [1966] HCA 86

High Court of Australia Taylor J. Barwick C.J. Menzies and Owen JJ. Ravenshoe Tin Dredging Ltd v Commissioner of Taxation (Cth)

ORDER Appeal allowed with costs. Order of Taylor J. dismissing appeal against assessment set aside and in lieu thereof order that that appeal be allowed with costs, the respondent's assessment of the appellant's income tax be varied by increasing the amount of taxable income to the sum of £32,839 and by increasing the amount of income tax payable accordingly.

Cur. adv. vult.

1965, April 28 Taylor J . delivered the following written judgment:—

This is an appeal against the assessment of the appellant to income tax in respect of income derived during the year ended 30th June 1961. Tax was assessed upon a taxable income of £26,271 whereas the appellant's taxable income according to its return was £32,839. But the appellant was a company whose business during the relevant period consisted solely of the carrying on of mining operations of the character specified in s. 23A (1) of the Income Tax and Social Services Contribution Assessment Act 1936-1960 Cth and part of its income was "exempt from income tax" pursuant to the provisions of that section. According to the appellant's calculations this part of its income amounted to £34,974 whilst according to the method of assessment employed by the respondent it amounted only to £6,568. The appeal involves consideration of the proper method of assessment of this item pursuant to the section in question which reads as follows:—

23a. (1) Where a person carries on mining operations in Australia or the Territory of Papua and New Guinea for the purpose of, or for purposes which include, the production of a prescribed metal or mineral, an amount equal to one-fifth of the amount remaining after deducting from so much of the assessable income of that person as is attributable to the production or is derived from the sale of the prescribed metal or mineral produced by those operations—