COMMONWEALTH AND STATE.

Dominion, Volume 1, Issue 58, 2 December 1907, Page 7

COMMONWEALTH AND STATE.

INCOME-TAX DECISION. BY TELEGRAFH—PRESS ASSOCIATION —COPYRIGHT. London, November '29. In tho cases involving the liability of Commonwealth "officials to .pay. income-lax, the Privy Council was petitioned direct by Victoria and New South Wales for leave to appeal aguinst tho decision of the Hij;n Court, which held that Federal officers' salaries are not liable to taxation by tho States. Tho Judicial Committee refused leave ( o appeal without calling on counsel for tho Commonwealth. No order was made as to costs. Their lordships will later give reasons for thoir decision. States engaged in the collection of their income tax were considerably surprised when tho High Court of Australia dpcided that Federal officers'and members qf tli'e Federal Parliament were not liable to pay State income tax. In questions as to tile limits (inter se) of tlio constitutional powers of the Commonwealth and those of any State, there can bo no appeal from a decision of tho High Court of Australia without the High Court's leave. This is provided in tho Constitution of Australia, which, however, by an apparent oversight, does not prevent decisions of the State Courts in tho saino questions being appealed against to tho Privy Council. So tho Stato Governments brought similar claims before tho Stato courts, and in tho latter following—out of respect of tho High Court—tho High Court's decision, appealed direct to tho Privy Council, which decided that Federal 1 officials are liable for income tax. Tho I'rivy Council thus holds an opposite opinion ■to the High Court's on llio legal merits of tho question when it comes as an appeal from a State court, but—as tho above cablegram shows—refuses to grant leave to appeal from the.High Court's decision. So thero are two final 'courts of appeal, and i-oso who go to the High Court get "No," while those who go to tho I'rivy Council get "Yes."