Federal Commissioner of Taxation v Higgins [1930] HCA 44; (1930) 44 CLR 297 (3 December 1930)

HIGH COURT OF AUSTRALIA

The Federal Commissioner of Taxation Appellant; and Higgins Respondent.

H C of A

On appeal from the Supreme Court of Victoria.

3 December 1930

Isaacs C.J., Rich and Starke JJ.

Sir Edward Mitchell K.C. (with him Fullagar), for the appellant.

Ham K.C. (with him Piggott, Martin and Herring), for the respondent.

Sir Edward Mitchell K.C., in reply.

The Court delivered the following judgment:—

Isaacs C.J.,

Rich and Starke JJ.

This case has been very fully and closely reasoned out, and the arguments have enabled us to state our conclusions without the necessity of further consideration. Assuming the trustee to be assessable after the Privy Council decision in March 1924, we are all clearly of opinion that in view of the terms of the provisions as to trustees that the trustee was assessable only in his representative capacity which makes his liability that of the person or persons he represents. After the Privy Council decision in 1924 the trustee represented B.A.W.R.A. in respect of the First 5 per cent Profits Dividend Trust and the Skin Wool Trust, and, consequently, the trustee's liability was on the company flat rate. The same principle applies to the Wool-brokers Trust, and the judgment of McArthur J. in June 1928 properly disposes of the matter.

The three appeals dismissed with costs.

Solicitor for the appellant, W. H. Sharwood, Commonwealth Crown Solicitor.

Solicitors for the respondent, Blake & Riggall.