Blockey v. Federal Commissioner of Taxation
31 CLR 503(Judgment by: Higgins J)
Blockey v. Federal Commissioner of Taxation
Court:
Judges:
Knox CJ
Isaacs J
Higgins JRich J
Starke J
Subject References:
Taxation and revenue
Income tax
Profits on speculation in wheat scrip
Income from personal exertion
Legislative References:
Income Tax Assessment Act 1915 (Cth) - Section 3
Judgment date: 12 March 1923;
MELBOURNE
Judgment by:
Higgins J
HIGGINS J. The position is that the appellant and two others bought through brokers, between 16th March and 14th May 1918, wheat scrip for a sum of PD5,238 14s. 2d. as a speculation to resell at a profit, and they sold it between 27th May and 30th June for PD8,657 2s. 4d. The appellant's share of the profit was PD1,850. In my opinion, this profit is "income from personal exertion" within the meaning of the definition in s. 3. It comes within the words "the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person." The transaction was "business" (s. 3), and the business was carried on from purchase to sale. The fact that there was but one sale of wheat scrip bought and sold does not affect the liability to income tax; just as the fact that a ship charterer makes only one voyage would not affect his liability to pay income tax on the profits of that voyage (s. 22). If a retired architect took up one job and earned one fee in the year for his services, he would have to bring that fee into his income account. The business of the speculation was carried on "as a partner" with the others, within the definition of "partnership" in s. 3. The fact admitted in this case, that the purchase was made with a view to profit on resale, distinguishes the case clearly from such cases as Commissioners of Taxation (N.S.W.) v Mooney [F9] .