Case A71

Members: AM Donovan Ch

JD Davies M
GR Thompson M

Tribunal:
No. 2 Board of Review

Decision date: 7 November 1969.

---

J. D. Davies (Member): The duty imposed by the Stamp Act 1921 (as amended) of Western Australia is a duty imposed on receipts and its effect is to make the payment of one cent per receipt of ten dollars or part thereof an ordinary and regular incident of income earning activities, including salaried employment, in Western Australia. It is, I think, immaterial that the liability logically falls subsequent to the derivation of each periodical receipt of salary or wages. It is an expense incurred as a regular incident of and in the course of the income earning activities. Moreover, the duty - though in so far as it falls on receipts of salary and wages it is a tax on income - is not an income tax and does not fail for deduction because of the principle that - ``income tax is a personal tax and not an expense of the concern'' (per Duke L.J.,
Patent Castings Syndicate Ltd. v. Etherington (1919) 2 Ch. 254 at p. 262).

2. I agree with the order proposed by the Chairman.