Liverpool and London and Globe Insurance Company Limited v Federal Commissioner of Taxation - [1927] HCA 18

108 HIGH COURT

[1927.

H. c. OF A.

Gavan D uffy J.

In my opinion the judgment appealed against

1927 . . .

■

is right and the appeal should be dismissed.

B o u c a d tB ay

Co. L t d .

Powers J. I agree.

<1n L iq u id a

t io n )

T he	R ich J. I agree.

Co m m o n

w e a l t h .

Appeal dismissed with costs.

Solicitors for the appellant, McLaughlin, Eaves cfe Johnston.

Not Foil

Solicitor for the respondent, W. H. Sharwood, Crown Solicitor for

H'<iA ,

McArthur Ltd

vFCTfl930)

45 CLR 1

the Commonwealth.

B. L.

[HIGH COURT OF AUSTRALIA.]

THE LIVERPOOL AND LONDON AND

GLOBE INSURANCE COMPANY

A p p e l l a n t ;

L I M I T E D ............................................

AND

THE FEDERAL COMMISSIONER

R e s p o n d e n t .

T A X A T IO N ...................................

H. C. OF A. War-time Profits Tax—Assessment— Objection to assessment—Allowance of objection

1927. and cancellation of assessment—Right of Commissioner afterwards to add to or alter assessment— War-time Profits Tax Assessment Act I9I7-I918 {No. .13 of

S y d n e y ,

1917—No. 40 of 1918), secs. 23, 28.

April 12, 20.

Where an objection has been taken by a taxpayer to an assessment for

Knox C.J.war-time profits tax and the Commissioner either allows the objection and

cancels the assessment, or, having disallowed the objection and having been requested to treat the objection as an appeal and to refer it to the High Court, withdraws his disallowance, allows the objection and cancels the assessment, he is not entitled afterwards to revive the question of liability to tax which has

40 C.L.R.] OF AUSTRALIA.

10»

80 been decided or to treat the assessment which has been cancelled as an

H. C. OF A.

existing assessment and under sec. 23 of the War-time Profits Tax Assessment

1927.

Act 1917-1918 to alter or add to it.

'—-—'

L iv e r p o o l

Trustees, Executors and Agency Co. v. Federal Commissioner of Land Tax,

AND

L o n d o n

(1915) 20 C.L.R. 21, distinguished.

AND

G l o b e

I n st jb a n c b

A p p e a l from the Federal Commissioner of Taxation.

Co . L t d .

The Liverpool and London and Globe Insurance Co. Ltd. having received notices, dated 9th Jime 1925, of assessment to war-time

F e d e r a l C o m m is

s io n e r OE

profits tax for the years 1917-1918 and 1918-1919 respectively and

T a x a t io n ,

the Commissioner of Taxation having allowed one of the grounds of objection, the Commissioner issued amended notices of assessment. It was then agreed that the objections already lodged,…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

AGLC: Liverpool and London and Globe Insurance Company Limited v Federal Commissioner of Taxation [1927] HCA 18
Case: [1927] HCA 18
Decision Date: 20 April 1927

CaseChat Overview and Summary

The High Court of Australia considered an appeal by the Liverpool and London and Globe Insurance Company Limited against an assessment made by the Federal Commissioner of Taxation under the War-time Profits Tax Assessment Act 1917-1918. The dispute concerned the Commissioner's power to amend or add to an assessment after an objection to that assessment had been allowed and the original assessment cancelled.

The central legal issue before the Court was whether, following the allowance of an objection and the cancellation of an assessment under section 22 of the War-time Profits Tax Assessment Act 1917-1918, the Commissioner retained the power to issue a further or amended assessment for the same tax period.

The Court reasoned that the effect of allowing an objection under section 22 was to nullify the original assessment entirely. Once an assessment was cancelled, it ceased to exist for all purposes. Therefore, the Commissioner was not merely amending an existing assessment but was required to make a fresh assessment if he believed one was warranted. The Court held that the Commissioner did possess the power to make a new assessment after the cancellation of the original one, as the Act did not preclude this. The appeal was dismissed.

Orders