Perrott v Deputy Federal Commissioner of Taxation (New South Wales)
40 CLR 450(Judgment by: Starke J)
Perrott
v Deputy Federal Commissioner of Taxation (New South Wales)
Judges:
Knox CJ
Isaacs J
Higgins J
Starke J
Subject References:
Taxation and revenue
Income tax
Buying and selling land
Money paid in installments
Legislative References:
Income Tax Assessment Act 1915 (Cth) No 34 - ss 3; ss 10
Judgment date: 1 May 1925
Sydney
Judgment by:
Starke J
I agree. The first question argued was simply one of fact which the learned Judge below rightly found, in my opinion, against the appellant. The second question argued before us was based upon the decision in St. Lucia Usines and Estates Co v Colonial Treasurer of St. Lucia [F1] . It was urged that no income had "come in" to the appellant in respect of the years for which he had been assessed. But, to take the year ending on 30th June 1920, the appellant received instalments from the sale of land amounting to the sum of PD35,384. That sum had actually "come in." But according to Mr. Watt, no part of that sum could be treated as income until the appellant recouped himself the whole of his capital outlay on the land. The appellant or his accountant allocated PD9,248 of that sum to profits or income-it was afterwards reduced to PD8,741-and stated the basis of his apportionment in a document (Ex. K). The method is based upon sensible business considerations and the Commissioner and the learned Judge were entitled, in my opinion, to act upon that method as a basis of assessment.