Molloy v The Federal Commissioner of Land Tax

This case concerned an appeal by Thomas George Anstruther Molloy to the High Court of Australia from a decision of Dixon J. upholding land tax assessments for the years 1917 to 1934. The Federal Commissioner of Land Tax raised a preliminary objection, arguing that the sole ground of appeal relied upon by Molloy was not included in his original objections to the assessments. This objection was based on section 44M (3) of the Land Tax Assessment Act 1910-1934, which stipulates that a taxpayer is limited to the grounds stated in their objection when appealing.

The central legal issue before the High Court was whether section 44M (3) of the Land Tax Assessment Act 1910-1934 operated as an absolute bar to a taxpayer raising a ground of appeal that was not previously included in their objection to the assessment, or if this statutory limitation could be waived by the Commissioner. The appellant contended that the Commissioner, by not formally objecting to this ground before Dixon J. and by proceeding to argue the merits of the case, had waived his right to raise this objection on appeal.

The Court held that section 44M (3) of the Land Tax Assessment Act 1910-1934 is a mandatory statutory provision that limits a taxpayer's grounds of appeal to those set out in their objection. The Court found that this provision is not merely for the benefit of the Commissioner, which he can waive, but is an imperative direction to the court to protect public revenue. The Court clarified that the Commissioner had indeed raised the objection before Dixon J., although no formal ruling was made as the appeal was decided on other grounds. Therefore, the Commissioner was not disentitled from taking this objection on the current appeal.

The appeal was dismissed with costs.