Commissioner of Taxation (Cth) v Barton [1957] HCA 5

Commissioner of Taxation (Cth) v Barton [1957] HCA 5

On the true interpretation of s. 171 (2), an assessment made after the three-month period is deemed to be an amended assessment for the purpose of applying the relevant time bar under s. 170, but it need not otherwise satisfy the requirements of an amended assessment such as correcting an error in calculation or mistake of fact. Because full and true disclosure had been made and the assessment was within the three-year period applicable under s. 170 (3), the assessment was valid.

Jurisdiction
Australia
Procedural Posture
Case Stated Concerning Income Tax Assessment / Questions in Case Stated Before the High Court of Australia
Outcome
Question 1 answered No. Question 2 answered that the right of objection is not now contested by the commissioner.
Legal Topics
['income Tax Assessment' 'delayed Original Assessment' 'deemed Amended Assessment' 'time Limits for Amended Assessments' 'full and True Disclosure']
['taxation Law' 'statutory Interpretation'] ['income Tax Assessment' 'delayed Original Assessment' 'deemed Amended Assessment' 'time Limits for Amended Assessments' 'full and True Disclosure']

Case Brief

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Procedural Posture

Case Stated Concerning Income Tax Assessment / Questions in Case Stated Before the High Court of Australia

Legal Issues

  1. 1 ['Whether, under the combined effect of s. 170 (3) and s. 171 of the Income Tax Assessment Act 1936-1947, it was competent for the commissioner to make an assessment after the three-month period in s. 171 had expired where the taxpayer had made full and true disclosure.' 'Whether an assessment deemed to be an amended assessment by s. 171 (2) had to satisfy every requirement of s. 170 (3), including that it correct an error in calculation or a mistake of fact.' "Whether the taxpayer's right of objection was available."]

Ratio Decidendi

On the true interpretation of s. 171 (2), an assessment made after the three-month period is deemed to be an amended assessment for the purpose of applying the relevant time bar under s. 170, but it need not otherwise satisfy the requirements of an amended assessment such as correcting an error in calculation or mistake of fact. Because full and true disclosure had been made and the assessment was within the three-year period applicable under s. 170 (3), the assessment was valid.

Court Disposition

Question 1 answered No. Question 2 answered that the right of objection is not now contested by the commissioner.

Orders

  • ['Questions in the case stated answered as follows: 1. No.' 'Questions in the case stated answered as follows: 2. The right of objection is not now contested by the commissioner.' 'Costs of the case stated to be dealt with by the judge disposing of the appeal.']