Webb v Outtrim [1906] UKPCHCA 4

Webb v Outtrim [1906] UKPCHCA 4

There is no implied constitutional prohibition preventing a State from taxing the salary of a Commonwealth officer earned and received in the State. The Constitution does not, either expressly or by implication, prevent such taxation. Nor does the Commonwealth Parliament have the power to remove the right of appeal to the Privy Council as provided by the Order in Council of 9 June 1860.

Parties
Appellant: Webb; Respondent: Outtrim; Intervenant: The Commonwealth of Australia
Jurisdiction
Australia
Judgment Date
06 December 1906
Procedural Posture
Appeal / On Appeal From the Supreme Court of Victoria to the Privy Council
Outcome
appeal allowed; Supreme Court of Victoria decision reversed
Legal Topics
State Legislative Power, Income Tax, Commonwealth Officer Liability, Implied Prohibitions, Appeals to Privy Council
Constitutional Law Taxation Law State Legislative Power Income Tax Commonwealth Officer Liability Implied Prohibitions Appeals to Privy Council

Case Brief

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Parties

Webb

Appellant

Outtrim

Respondent

The Commonwealth of Australia

Intervenant

Procedural Posture

Appeal / On Appeal From the Supreme Court of Victoria to the Privy Council

Legal Issues

  1. 1 Whether an officer of the Commonwealth is liable to income tax by a State on salary earned and received in that State
  2. 2 Whether the Constitution impliedly prohibits State taxation of Commonwealth officers' salaries
  3. 3 Whether the Commonwealth Parliament can remove the right of appeal to the Privy Council from the Supreme Court of Victoria

Ratio Decidendi

There is no implied constitutional prohibition preventing a State from taxing the salary of a Commonwealth officer earned and received in the State. The Constitution does not, either expressly or by implication, prevent such taxation. Nor does the Commonwealth Parliament have the power to remove the right of appeal to the Privy Council as provided by the Order in Council of 9 June 1860.

Court Disposition

appeal allowed; Supreme Court of Victoria decision reversed

Orders

  • The judgment of the Supreme Court of Victoria is reversed.
  • It is declared that the salary in question was rightly included in the State assessment and liable to income tax.