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Wednesday, 6 August 1930

Senator DALY (South Australia) (Vice-President of the Executive Council) . - The cases referred to by the right honorable the Leader of the Opposi tion (Senator Pearce) are covered by what is known as the Blockey Case, which is reported in 31 C.L.R. page 503. The headnote of that case reads -

Three persons entered into an agreement to buy from time to time wheat scrip to the value of about £5,000, to sell the scrip as opportunity offered at a profit, and to divide any profits between them in certain proportions. The buying of the scrip extended over a period of about two months, and the selling over a subsequent period of about one month, and the result was that a profit was realized.

Held, that the share of the profits of each of the persons was the proceeds of a business carried on by him within the definition of income from personal exertion ", in section 3 of the Income Tax Assessment Act 1915-1921. and was therefore part of his assessable income.

That was the judgment of the High Court, consisting of Knox, C.J. ; Isaacs,

J.;Higgins, J.; Starke,J. ; so that. it was a very good Bench. As to the second point raised by the Leader of the Opposition, it is not the intention of the department to re-open any assessments, but it is necessary that this provision should be made retrospective so that this legislation will apply to cases in which objectionhas been lodged.

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