Mutual Life & Citizens' Assurance Co Ltd v Commissioner of Taxation (Cth) [1959] HCA 21

High Court of Australia Dixon C.J. McTiernan, Fullagar, Taylor and Menzies JJ. Mutual Life & Citizens' Assurance Co Ltd v Commissioner of Taxation (Cth) [1959] HCA 21

ORDER Question in the case stated answered: Yes, wholly. Order that the costs of the case stated be reserved for the judge disposing of the appeal.

Cur. adv. vult.

The following written judgments were delivered:—

April 27, 1959 Dixon C.J.

I have had the advantage of reading the judgment prepared by Fullagar J. and I agree in it.

McTiernan J.

I am of opinion that the decision of this case is governed by the decision in Inland Revenue Commissioners v. Australian Mutual Provident Society [4] . In my opinion, therefore, the question asked by the stated case should be answered "Yes".

1. (1947) A.C. 605. Fullagar J.

This is a case stated by Menzies J. in an appeal by the Mutual Life and Citizens' Assurance Company Limited against an amended assessment of income tax on income derived by it in the accounting period ended 31st December 1935. The company is incorporated in New South Wales, and is a resident of Australia within the meaning of the Income Tax Assessment Act 1936 Cth.. It carries on the business of life assurance in Australia, and also in the United Kingdom, where it maintains a branch. During the accounting period the investments of its life assurance fund included certain United Kingdom war loan stock, New South Wales Government inscribed stock, New Zealand Government inscribed stock, and Alberta and Great Waterways stock. The interest on these securities, which amounted to a total sum of £71,427 4s. 11d., was payable and paid in the United Kingdom. The question raised by the stated case is whether the whole or any part of this sum is exempt from Commonwealth income tax under s. 23 (q) of the Assessment Act. Section 23 provides that "The following income shall be exempt from income tax:— (q) income derived by a resident from sources out of Australia, where that income is not exempt from income tax in the country where it is derived ".