Re Dymond [1959] HCA 22

Re Dymond [1959] HCA 22

The provisions relied on by the bankrupt, including s. 10 (2B) of the Sales Tax Assessment Act (No. 2) and s. 46 of the Sales Tax Assessment Act (No. 1) as incorporated, did not impose taxation but imposed penalties payable by way of additional tax. They therefore did not make the Sales Tax Assessment Act (No. 2) a law imposing taxation for the purposes of s. 55 of the Constitution, and s. 55 did not render any provision of that Act of no effect.

Jurisdiction
Australia
Procedural Posture
Bankruptcy; Constitutional Validity of Commonwealth Sales Tax Legislation / Case Stated by the Federal Court of Bankruptcy Under S. 20 (3) of the Bankruptcy Act 1924 1958 for the Opinion of the High Court
Outcome
Question reserved answered against the bankrupt's contention; no provision of the Sales Tax Assessment Act (No. 2) was made of no effect by s. 55 of the Constitution.
Legal Topics
['s. 55 of the Constitution' 'laws Imposing Taxation' 'sales Tax Assessment' 'additional Tax' 'penalties' 'annulment of Sequestration Order']
['constitutional Law' 'taxation Law' 'bankruptcy Law'] ['s. 55 of the Constitution' 'laws Imposing Taxation' 'sales Tax Assessment' 'additional Tax' 'penalties' 'annulment of Sequestration Order']

Case Brief

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Procedural Posture

Bankruptcy; Constitutional Validity of Commonwealth Sales Tax Legislation / Case Stated by the Federal Court of Bankruptcy Under S. 20 (3) of the Bankruptcy Act 1924 1958 for the Opinion of the High Court

Legal Issues

  1. 1 ['Whether the Sales Tax Assessment Act (No. 2) 1930-1936, or any sections of it, were of no effect by virtue of the first paragraph of s. 55 of the Constitution.' 'Whether provisions requiring payment of a minimum sum of £1 or additional amounts under s. 10 (2B) of the Sales Tax Assessment Act (No. 2) and s. 46 of the Sales Tax Assessment Act (No. 1), as incorporated, imposed taxation or imposed penalties.' 'Whether provisions of an assessment Act dealing with incidence, assessment, collection, recovery, objections, appeals and related machinery deal with matters other than the imposition of taxation for s. 55 purposes.']

Ratio Decidendi

The provisions relied on by the bankrupt, including s. 10 (2B) of the Sales Tax Assessment Act (No. 2) and s. 46 of the Sales Tax Assessment Act (No. 1) as incorporated, did not impose taxation but imposed penalties payable by way of additional tax. They therefore did not make the Sales Tax Assessment Act (No. 2) a law imposing taxation for the purposes of s. 55 of the Constitution, and s. 55 did not render any provision of that Act of no effect.

Court Disposition

Question reserved answered against the bankrupt's contention; no provision of the Sales Tax Assessment Act (No. 2) was made of no effect by s. 55 of the Constitution.

Orders

  • ['Question reserved by the judge of the Federal Court of Bankruptcy for the opinion of this Court answered by declaring that no provision of the Sales Tax Assessment Act (No. 2) is made of no effect by s. 55 of the Constitution.' 'Order that the costs of the special case be disposed of by the order of the Federal...