BOHEMIANS CLUB v ACTING FEDERAL COMMISSIONER OF TAXATION
24 CLR 334(Decision by: RICH J)
Between: BOHEMIANS CLUB
And: ACTING FEDERAL COMMISSIONER OF TAXATION
Judges:
Griffith CJ
Barton J
Powers J
Rich J
Subject References:
Taxation and revenue
Income tax
Club
Subscriptions
Legislative References:
Income Tax Assessment Act 1915 - (No 34)
Judgment date: 21 March 1918
Melbourne
Decision by:
RICH J
The question for our determination is whether the subscriptions of the members of the Bohemian Club are taxable income within the meaning of the Income Tax Assessment Act 1915-1916. I will assume that this Club is an unicorporated association within s. 3 of the Act. That, however, leaves the question whether this body has an income which is taxable.
Counsel for the respondent argued that these subscriptions were income derived from personal exertion. Of whom can such exertion be predicated-the Club or its members? The answer is of no importance because "income from property'...means all income...not derived from personal exertion," whether it is income from property or not. It is not easy to understand why "income from property" should have this wholly artificial meaning fixed upon it. We are thus brought to the question, what language in the Act imposes a burden on these subscriptions? I can find none. Such resources are not income. No doubt, the returns from sales of any commodities are income of the association on the assumption I have made, but it would require an established customary meaning in fiscal provisions to enable the word "income" to be stretched to cover such subscriptions as these. I know of no such extended meaning, and the Act creates none.
I therefore answer the questions submitted in the negative.