Broome v Chenoweth [1946] HCA 53

Broome v Chenoweth [1946] HCA 53

Where an employee's payment is calculated solely by reference to the quantity of work done, with no obligation as to working time or duration, and there is no reference to a period of time in the contract, such payment is not made 'in respect of' any week, part of a week, or period of time within s. 221c of the Income Tax Assessment Act 1936-1945. Therefore, the obligation to deduct tax at source did not arise. Accordingly, the conviction was set aside and the order of the magistrate restored.

Parties
Appellant; Defendant: Alfred Broome; Respondent; Informant: Richard Willmore Chenoweth, Deputy Federal Commissioner of Taxation
Jurisdiction
Australia
Procedural Posture
Appeal From the Supreme Court of Victoria (on Order to Review a Decision of a Court of Petty Sessions) / High Court Judgment on Appeal
Outcome
Appeal allowed
Legal Topics
Income Tax Deductions by Employer, Piece Work Versus Time Based Wages, Plea of Autrefois Acquit (double Jeopardy), Summary Proceedings, Statutory Interpretation
Taxation Law Criminal Law Income Tax Deductions by Employer Piece Work Versus Time Based Wages Plea of Autrefois Acquit (double Jeopardy) Summary Proceedings Statutory Interpretation

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Parties

Alfred Broome

Appellant; Defendant

Richard Willmore Chenoweth, Deputy Federal Commissioner of Taxation

Respondent; Informant

Procedural Posture

Appeal From the Supreme Court of Victoria (on Order to Review a Decision of a Court of Petty Sessions) / High Court Judgment on Appeal

Legal Issues

  1. 1 Does s. 221c of the Income Tax Assessment Act 1936-1945 require an employer to deduct tax where the employee is paid for piece-work rather than for a period of time?
  2. 2 Does the dismissal of an earlier information 'for want of prosecution' bar subsequent proceedings for the same alleged offence (autrefois acquit)?

Ratio Decidendi

Where an employee's payment is calculated solely by reference to the quantity of work done, with no obligation as to working time or duration, and there is no reference to a period of time in the contract, such payment is not made 'in respect of' any week, part of a week, or period of time within s. 221c of the Income Tax Assessment Act 1936-1945. Therefore, the obligation to deduct tax at source did not arise. Accordingly, the conviction was set aside and the order of the magistrate restored.

Court Disposition

Appeal allowed

Orders

  • Order of the Supreme Court of Victoria set aside
  • Order nisi to review discharged with costs