Union Trustee Company of Australia Ltd v Federal Commissioner of Land Tax [1915] HCA 68; (1915) 20 CLR 526 (27 September 1915)

HIGH COURT OF AUSTRALIA

Union Trustee Company of Australia Limited Appellant; and The Federal Commissioner of Land Tax Respondent.

H C of A

27 September 1915

Griffith C.J., Gavan Duffy and Rich JJ.

Pigott, for the appellant.

Starke, for the respondent.

Pigott, in reply.

The judgment of the Court was read by

Sept. 27

Griffith C.J.

The question submitted for determination in this case depends upon the answer to the prior question whether the beneficiaries on whose behalf the appeal is brought are personally, and independently of the trustees, taxable as owners of the land. At the date as of which the assessment was made they were not entitled to receive any part of the income, the whole of which, less some annuities, was subject to trusts for accumulation during the life of the testator's widow. On her death (which has since happened) the whole beneficial interest in the land and the accumulations would be shared between them.

Glenn's Case is a direct authority that under these circumstances they are not within either of the categories mentioned in the definition of the term in sec. 3 of the Act.

That term primâ facie connotes entire dominion. Sec. 3 extends the meaning so as to take in certain persons who possess some, but not all, of the rights of absolute owners. Although, therefore, the language of the definition is in form inclusive, and not exhaustive, it must be read as if the words "besides absolute owners" were inserted after "includes." So read, the definition is exhaustive, and this, we think, is the true construction.

Mr. Starke did not dispute that the beneficiaries are in one sense equitable owners of the land, but for the reasons we have given they are not taxable as owners under the Act.

Question answered accordingly.

Solicitors, for the appellant, Blake & Riggall.

Solicitor, for the respondent, Gordon H. Castle, Crown Solicitor for the Commonwealth.