Amalgamated Zinc (De Bavay's) Ltd v Federal Commissioner of Taxation

(1935) 54 CLR 295
(1935) 9 ALJR 342
(1936) ALR 67
(1935) 3 ATD 288

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(Decision by: McTIERNAN J)

AMALGAMATED ZINC (DE BAVAY'S) LTD v COMMISSIONER

Court:

Judges: Latham CJ
Rich J
Starke J
Dixon J
Evatt J
McTiernan J

Subject References:
Taxation and revenue
Income tax
Deductions
Compulsory contributions to fund
Continuing obligation to contribute
Outgoings
Loss made

Legislative References:
Income Tax Assessment Act 1922 (Cth) No 37 - ss 23(1)(a); ss 26

Hearing date: 15 November 1935; 19 December 1935
Judgment date: 19 December 1935

MELBOURNE

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Decision by:
McTIERNAN J

McTIERNAN J. I agree that the questions asked should be answered in the negative.

The language of s. 23 (1) (a) is quite inapt to authorize a deduction of the appellant's contribution to the compensation scheme referred to in the special case. Nor are these contributions deductible under s. 26, for, assuming that this is a case to which the section might apply if s. 26 (1) (a) were satisfied, there is no proof that the loss incurred by paying the compensation was made in carrying on a business in Australia. The evidence, indeed, shows that the appellant had ceased to carry on the business of mining when the contributions were paid.