Moffatt v Webb

Judges: Griffith CJ
Barton J
Isaacs J

Gavan Duffy J

Subject References:
Taxation and revenue
Income tax
Assessment
Deduction
Outgoings
Whether incurred in production of income as a grazier
Whether Commonwealth land tax deductible

Legislative References: - Income Tax Act 1895 (Vic) No 1374

MELBOURNE

Decision by:
Gavan Duffy J.

I agree that the appeal should be allowed. It is admitted that the land in question is used by the taxpayer wholly and exclusively for the purposes of his trade as a grazier. In these circumstances the Commonwealth land tax paid in respect of that land on which he carries on that trade is, in my opinion, an outgoing actually incurred in Victoria in the production of income. I think, therefore, that the taxpayer is entitled to deduct the sum paid for Commonwealth land tax from the gross amount of his income under the provision of s. 9 (1) of the Income Tax Act 1895; and I also think that there is nothing in the other provisions of that section which precludes him from making that deduction.