PRIVY COUNCIL APPEAL.

New Zealand Herald, Volume XLIII, Issue 13356, 10 December 1906, Page 5

PRIVY COUNCIL APPEAL.

FEDERAL INCOME TAX CASE. By Telegraph—Press Association—Copyright. London-, December 8. The Privy Council has delivered judgment in the appeal case of the Commissioner of Taxes o£ Victoria versus the Deputy-Postmaster-Gene-ral of Victoria. The effect of the decision is that' the judgment of the Supreme Court of Victoria that the officers of the Federal Government are not liable for State income tax is reversed. The Commonwealth Government's petition in regard to the case was dismissed. Melbourne, December 8. In connection with the Privy Council's decision in the case of the Commissioner of Taxes versus the Deputy-Postmaster. General, the great point on which the Commonwealth was interested -was not the payability or otherwise of income tax, but the finality or otherwise of the judgment of the High Court in Constitutional cases. The result is that the finality of the High Court's decisions is seriously affected by the Privy Council. The amount involved under the decision is not known. This case arose in 1904, on account of the Federal officers in Victoria refusing to pay the State income tax. The High Court decided that they were not liable for the payment, and refused leave to appeal to the Privy Council. The application for leave to appeal to the Privy Council was asked for in March of last year, from the State Supreme Court, and granted. The appeal was taken by the Victorian Government.