Flemmich v Federal Commissioner of Land Tax

The case of *Flemmich v Federal Commissioner of Land Tax* concerned an appeal by Nea Vivian Flemmich against land tax assessments for the years 1912 to 1915. The dispute centred on the method of calculating deductions to avoid double taxation, particularly where a taxpayer was both a joint owner of land and an owner in severalty of other land subject to a lease.

The High Court was required to determine the correct method for ascertaining the amount of deduction to which the appellant was entitled under section 38 of the *Land Tax Assessment Act 1910-1914*. Specifically, the court had to decide whether, when calculating the unimproved value of all land owned by the appellant for the purpose of apportionment under section 43A, the unimproved value of a lease granted over land owned in severalty should be deducted.

Griffith C.J., with whom Gavan Duffy J. agreed, reasoned that section 28 of the Act entitled the appellant to deduct the value of the lease from the unimproved value of the land she owned in severalty. This reduced value, when added to her interest in the jointly owned land, constituted the total unimproved value of all land owned by her for assessment purposes. The court held that section 43 of the Act mandated a deduction of the tax payable in respect of the land or interest by the secondary taxpayer to prevent double taxation. As the trustees had already paid tax exceeding the amount attributable to the jointly owned land, the entire amount attributable to that interest was deductible. The court found the appellant's contention to be correct, and the question submitted was answered accordingly.