Re Dymond [1959] HCA 22

High Court of Australia Dixon C.J. McTiernan, Fullagar, Kitto, Taylor, Menzies and Windeyer JJ. Re Dymond [1959] HCA 22

ORDER Question reserved by the judge of the Federal Court of Bankruptcy for the opinion of this Court answered by declaring that no provision of the Sales Tax Assessment Act (No. 2) is made of no effect by s. 55 of the Constitution. Order that the costs of the special case be disposed of by the order of the Federal Court of Bankruptcy.

Cur. adv. vult.

The following written judgments were delivered:—

April 27, 1959 Dixon C.J.

I agree in the reasons for judgment prepared by Fullagar J. and in the order which his Honour's judgment proposes.

McTiernan J.

I concur in the reasons and conclusion of Menzies J.

Fullagar J.

This is a case stated by the Federal Court of Bankruptcy (Clyne J.) under s. 20 (3) of the Bankruptcy Act 1924-1958. The estate of Peter Terence Dymond was sequestrated by an order made on his own petition on 24th May 1957. The only proof of debt lodged was lodged by the Deputy Commissioner of Taxation for the State of New South Wales, who claimed a sum of £17,253, later reduced to £17,148, as payable under the Sales Tax Assessment Act (No. 2) 1930-1936 and the Sales Tax Act (No. 2) 1930-1956 of the Commonwealth on sales of goods made by the bankrupt between September 1949 and June 1956. On 25th February 1958 the bankrupt, by motion on notice to the commissioner, sought the annulment of the sequestration order on the ground that he was not indebted to the commissioner. His contention was that all relevant provisions of the Sales Tax Assessment Act (No. 2) are invalid because the Act does not comply with the requirements of s. 55 of the Constitution. The question asked by the case stated is whether this contention is sound.

Section 55, so far as material, provides that "Laws imposing taxation shall deal only with the imposition of taxation, and any provision therein dealing with any other matter shall be of no effect. Laws imposing taxation shall deal with one subject of taxation only."