Commissioner of Taxation (Western Australia) v Newman

29 CLR 484

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(Decision by: Starke J)

Commissioner of Taxation (Western Australia)
v Newman

Court:

Judges: Knox CJ
Higgins J

Starke J

Subject References:
Taxation and revenue
Income tax
Sale of business as going concern
Income of vendor
Assessment as to live-stock

Legislative References:
Land and Income Tax Assessment Act 1907 (WA) No 15 - ss 2, 16(1)(a)

Hearing date: PERTH 8 September 1921; 9 September 1921;
Judgment date: 9 September 1921

Perth

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Decision by:
Starke J

I agree that the appeal must be dismissed. The matter is one of fact, and the fact to be determined is whether the transaction out of which the profits and moneys arose was a carrying on or carrying out of the trade or business of the taxpayer. There are only two paragraphs in the case stated which in any way describe that business. It is stated that the business of the taxpayer was that of a pastoralist, but, for some reasons appearing good to him, he resolved to and did sell his station and all the land, plant and stock connected with it. On that set of facts I am of opinion that the proper conclusion to be drawn is that the final transaction, in which he disposed of the station, plant and stock, was not a carrying on or a carrying out of his business, and the profit therefore was not derived from and did not accrue from any trade or business carried on by the taxpayer in Western Australia.

The judgment of the Supreme Court is right, and the appeal must be dismissed.