Blockey v. Federal Commissioner of Taxation
31 CLR 503(Judgment by: Knox CJ)
Blockey v. Federal Commissioner of Taxation
Court:
Judges:
Knox CJIsaacs J
Higgins J
Rich 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:
Knox CJ
The following written judgments were delivered:
KNOX C.J. On the facts stated in the special case I am of opinion that question 1 should be answered in the affirmative. The profits in question were the result of a joint venture undertaken by the appellant and two other persons. The agreement between them was that they should buy from time to time wheat scrip for the sole purpose of reselling such scrip as opportunity offered at a profit. The transactions of purchase and sale extended over a considerable period, and the intention of the appellant and his co-adventurers clearly was not to hold the scrip as an investment but if possible to realize a profit by selling it at a higher price than they gave for it.
The observations in the Californian Copper Syndicate Ltd v Harris [F1] and in T. Beynon & Co v Ogg [F2] , referred to by Mr. Gregory, cover this case in principle.